In deciding whether to accept or reject a "special sales order," which of the following costs are likely relevant to the decision?
A) Depreciation expense on existing manufacturing equipment.
B) A portion of facility-level costs.
C) A portion of batch-level costs.
D) Total batch-level costs.
E) An allocated share of fixed manufacturing support (i.e., fixed factory overhead) costs.

Question

Quizplus · Accepted Answer

Batch-level costs are relevant because they are directly associated with the production of the special order and can change with the decision to accept or reject the order.

In Deciding Whether to Accept or Reject a "Special Sales