The fixed costs of existing facilities are usually included in the analysis for special order decisions.

Name: The fixed costs of existing facilities are usually included in the analysis for special order decisions.
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Question

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Fixed costs of existing facilities are typically not included in special order decisions because they do not change as a result of accepting or rejecting the special order. Special order decisions usually focus on incremental costs and revenues.

The Fixed Costs of Existing Facilities Are Usually Included in the Analysis