Which of the following is not relevant in the decision to accept a special order?
A)Depreciation on factory equipment
B)Variable cost of the product
C)Sales commissions based on a percentage of the sales price
D)Direct labor associated with the product

Question

Quizplus · Accepted Answer

Depreciation on factory equipment is a fixed cost and not relevant in the decision to accept a special order. Variable cost of the product, sales commissions based on a percentage of the sales price, and direct labor associated with the product are all relevant in the decision to accept a special order because they impact the overall profitability of the order.

Which of the Following Is Not Relevant in the Decision