In determining the selling price of a special order that can be completed using existing capacity, the fixed costs per unit should be included in the consideration of the costs of the special order.

Question

Quizplus · Accepted Answer

In determining the selling price of a special order that can be completed using existing capacity, only the incremental costs associated with the order should be considered. Fixed costs are not affected by the order, as they would be incurred regardless of whether the order is accepted or not.

In Determining the Selling Price of a Special Order That