The sum of unit variable and fixed costs are used as a basis for determining whether to accept or reject a special order.

Name: The sum of unit variable and fixed costs are used as a basis for determining whether to accept or reject a special order.
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Question

Quizplus · Accepted Answer

The decision to accept or reject a special order is typically based on whether the incremental revenue from the order exceeds the incremental costs, which usually include only variable costs, not fixed costs.

The Sum of Unit Variable and Fixed Costs Are Used