Variable cost per unit is the best product cost to use for one-time-only special order decisions.

Question

Quizplus · Accepted Answer

Variable cost per unit only considers the variable costs involved in producing a unit of product, while ignoring fixed costs. In one-time-only special order decisions, fixed costs may not be relevant, and therefore variable cost per unit can provide an accurate measure of the cost of producing one additional unit of product.

Variable Cost Per Unit Is the Best Product Cost to Use