All per-unit costs allocated under absorption costing should be included in determining whether to accept a special order or not.

Name: All per-unit costs allocated under absorption costing should be included in determining whether to accept a special order or not.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Only incremental production costs should be considered. Fixed costs of production are irrelevant if there is no change in the total fixed costs with the special order.

All Per-Unit Costs Allocated Under Absorption Costing Should Be Included