Special order decisions should be made using variable costing because:
A) Special order decisions usually focus on fixed costs
B) Variable costing includes all overhead costs in the calculation of product costs.
C) Only variable costs will increase as a result of the special order.
D) All costs, including variable and fixed costs, must be covered by the special order pricing.

Question

Quizplus · Accepted Answer

Special order decisions typically involve analyzing the additional costs incurred, which are usually variable costs, as fixed costs remain unchanged.

Special Order Decisions Should Be Made Using Variable Costing Because