In considering a special order that will enable a company to make use of presently idle capacity,which of the following costs would be irrelevant?
A)Materials
B)Depreciation
C)Direct Labor
D)Variable Overhead

Question

Quizplus · Accepted Answer

Depreciation is typically a fixed cost that does not change with the level of production or sales. Therefore, it is considered irrelevant when evaluating a special order, as it would be incurred regardless of whether the order is accepted or not.

In Considering a Special Order That Will Enable a Company