Examples of relevant fixed costs for a special order decision are the purchase of additional machinery,an increase in supervisory help,and an increase in insurance premiums required by a specific order.

Question

Quizplus · Accepted Answer

Relevant fixed costs are those that will change as a result of accepting or rejecting a specific order. The examples mentioned in the statement are relevant fixed costs as they would incur only if the special order is accepted.

Examples of Relevant Fixed Costs for a Special Order Decision