Which of the following is irrelevant in the evaluation of a special order?

Question

Quizplus · Accepted Answer

Average production cost is irrelevant in the evaluation of a special order as it does not affect the decision to accept or reject the order. The relevant costs are the differential costs, which are the additional costs incurred or saved as a result of accepting the special order, and the differential income, which is the additional revenue generated by the special order. Idle capacity and the opportunity cost of using that capacity are also relevant factors in the evaluation of a special order.

Which of the Following Is Irrelevant in the Evaluation of a Special