Management is considering a one-time-only special order. There is sufficient idle capacity to fill the order without affecting any normal sales. Which one of the following is NOT relevant in making the decision?
A)absorption costing unit product costs
B)variable costs
C)incremental costs
D)differential costs

Question

Quizplus · Accepted Answer

Absorption costing unit product costs are not relevant in making the decision for a one-time-only special order as they include fixed manufacturing overhead costs that have already been incurred and cannot be changed in the short term. Variable costs, incremental costs, and differential costs are all relevant to determine the profitability of the special order, as they directly affect the short-term decision-making process.

Management Is Considering a One-Time-Only Special Order