Which of the following items is usually NOT important to special order decisions?
A) affect of special order on regular business
B) whether idle capacity is available
C) total fixed costs
D) increase in variable costs per unit due to special order

Question

Quizplus · Accepted Answer

Total fixed costs are usually sunk costs and do not vary with the decision of accepting or rejecting a special order. Therefore, they are typically not important to special order decisions. Factors such as the impact on regular business, availability of idle capacity, and increase in variable costs per unit due to the special order are much more relevant to making a decision.

Which of the Following Items Is Usually NOT Important to Special