Which of the following costs is irrelevant in the decision making of a special order when there is idle production capacity - enough excess capacity to accept the order?
A) fixed manufacturing costs
B) units sold
C) material cost
D) labor hours incurred

Question

Quizplus · Accepted Answer

Fixed manufacturing costs are considered irrelevant in the decision-making process for a special order when there is idle production capacity because these costs will be incurred regardless of whether the special order is accepted or not.

Which of the Following Costs Is Irrelevant in the Decision