If a company would have to incur additional fixed costs to produce a special order, then those costs are considered relevant.

Name: If a company would have to incur additional fixed costs to produce a special order, then those costs are considered relevant.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Fixed costs that change as a direct result of taking on a special order are considered relevant because they would not be incurred if the order were not accepted.

If a Company Would Have to Incur Additional Fixed Costs