Which of the following costs is not relevant in a special-order decision?
A)Direct labor
B)Direct materials
C)Variable overhead
D)Fixed overhead

Question

Quizplus · Accepted Answer

Fixed overhead costs are not directly impacted by a special order decision, as they are sunk costs that cannot be avoided or reduced in the short term. The relevant costs for a special order decision are typically the direct materials, direct labor, and variable overhead costs.

Which of the Following Costs Is Not Relevant in a Special-Order