In a special order decision, fixed costs that do NOT differ between two alternatives are
A) of major importance to the decision.
B) considered opportunity costs.
C) important only if they are a material dollar amount.
D) irrelevant.

Question

Quizplus · Accepted Answer

Since fixed costs do not differ between two alternatives, they do not affect the decision-making process as they have no relevance to the decision at hand. Therefore, they are considered irrelevant.

In a Special Order Decision, Fixed Costs That Do NOT