Relevant costs for pricing a special order include:
A)existing fixed manufacturing overhead
B)nonmanufacturing costs that will not change even if the special order is accepted
C)additional setup costs for the special order
D)All of these answers are correct.

Question

Quizplus · Accepted Answer

Additional setup costs for the special order are relevant because they are incremental costs directly associated with the special order. Existing fixed manufacturing overhead and nonmanufacturing costs that do not change are not relevant as they do not affect the decision.

Relevant Costs for Pricing a Special Order Include