Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall

Exercise 88

For the following questions, circle the best response.

In considering whether to accept a special order at a price that is less than the normal selling price of the product when the additional sales will use present idle capacity, which of the following costs will not be relevant?

a. Fixed manufacturing overhead that can be avoided.

b. Direct materials.

c. Variable overhead.

d. Depreciation of the manufacturing plant.

e. Direct labor.