Kitchens Sales Inc.is approached by Mr.Louis Cifer,a new customer,to fulfill a large one-time-only special order for a product similar to one offered to regular customers.The following per unit data apply for sales to regular customers:
Kitchens Sales inc.has excess capacity.Mr.Cifer wants the cabinets in cherry rather than oak,so direct material costs will increase by $65 per unit.The average marketing cost of Kitchens Sales product is $175 per order.Which of the following costs is NOT considered to calculate the minimum acceptable price of a one-time-only special order?
A) marketing costs
B) direct material costs
C) indirect material costs
D) special design costs
Correct Answer:
Verified
Q43: Which of the following are potential problems
Q49: An example of a qualitative factor for
Q52: Unit cost data can most mislead decisions
Q53: Equal weight must be given to qualitative
Q54: Relevant costs are _.
A) sunk costs
B) expected
Q61: Business function costs are the sum of
Q64: For one-time-only special orders, fixed costs may
Q75: Sunk costs are irrelevant to decision making.
Q79: Variable cost per unit is the best
Q80: A cost may be relevant for one
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents