Which of the following would be considered a relevant fixed cost in making a special order...
Which of the following would be considered a relevant fixed cost in making a special order decision?
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Unavoidable fixed costs associated with current business. |
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Contribution margin of any current business replaced. |
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Depreciation on existing production equipment. |
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Incremental fixed costs associated with the order. |
Homework Answers
Any incremental Fixed costs to be incurred on the special order which could have been avoided if the special order is not taken will be considered as relevant fixed cost when making a special order.
So Option D is correct answer
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