The Page Turner Publishing Company is trying to decide whether to accept a special order for its latest blockbuster.In making this decision,which level of costs will most likely be relevant to the decision?
A) Batch-level costs.
B) Facility-level costs.
C) Unit-level costs.
D) None of these answers are correct.

Question

Quizplus · Accepted Answer

Unit-level costs are the costs that vary with the number of units produced or sold, such as direct materials and direct labor. In the case of deciding whether to accept a special order, the relevant costs would be those that are directly affected by the production of additional units. Therefore, unit-level costs such as materials and labor would be the most relevant to the decision. Batch-level and facility-level costs are not directly affected by the decision to accept a special order and would be considered irrelevant.

The Page Turner Publishing Company Is Trying to Decide Whether