In making a special order decision, which of the following is a relevant fixed cost?
A) Incremental fixed costs associated with current business
B) Unavoidable allocated fixed costs
C) Depreciation on existing production equipment
D) Incremental fixed costs associated with the order

Question

Quizplus · Accepted Answer

Incremental fixed costs associated with the order are relevant because they represent additional fixed costs that would be incurred as a direct result of accepting the special order. These costs would not be incurred if the order were not accepted, making them relevant to the decision-making process.

In Making a Special Order Decision, Which of the Following