In a special sales order decision, incremental fixed costs that will be incurred if the special order is accepted are considered to be

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Incremental fixed costs that will be incurred if the special order is accepted are relevant to the decision. Relevant costs are costs that will be affected by accepting or rejecting a specific business decision. In this case, the incremental fixed costs will be incurred only if the special order is accepted, so they are incremental and relevant to the decision-making process.

In a Special Sales Order Decision, Incremental Fixed Costs That