In a special sales order decision, incremental fixed costs that will be incurred if the special order is accepted are considered to be
A)opportunity costs.
B)irrelevant to the decision.
C)relevant to the decision.
D)sunk costs.

Question

Quizplus · Accepted Answer

Incremental fixed costs that will be incurred if the special order is accepted are relevant to the decision. This is because accepting the special order will increase the company's fixed costs, which can impact the company's overall profitability. Therefore, these costs should be considered when making the special order decision.

In a Special Sales Order Decision, Incremental Fixed Costs That