In special order situations,unit costs are useful for predicting total ________.In special order situations,unit costs are not useful for predicting total ________.
A) mixed costs; step costs
B) step costs; mixed costs
C) variable costs; fixed costs
D) fixed costs; variable costs

Question

Quizplus · Accepted Answer

In special order situations, unit costs are useful for predicting total variable costs because variable costs change directly with the level of production or sales volume. However, unit costs are not useful for predicting total fixed costs, as fixed costs do not change with the level of production or sales volume.

In Special Order Situations,unit Costs Are Useful for Predicting Total