Which of the following is $\textbf{ not }$ 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)All of these ans choices are relevant.

Question

Which of the following is $\textbf{  not        }$ 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)All of these ans choices are relevant.

Quizplus · Accepted Answer

Depreciation on factory equipment is not relevant in the decision to accept a special order as it is a sunk cost and has already been incurred regardless of the decision to accept the order or not. The decision to accept a special order should be based on the incremental revenue and variable costs associated with the order, as well as any additional costs or revenue that may arise from accepting the order (such as sales commissions).

Which of the Following Is not \textbf{ not } not

Which of the Following Is $\textbf{ not }$