The sum of unit variable and fixed costs is used as a basis for determining whether to accept or reject a special order.

Name: The sum of unit variable and fixed costs is used as a basis for determining whether to accept or reject a special order.
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Question

Quizplus · Accepted Answer

The decision to accept or reject a special order is typically based on whether the order's price covers the variable costs and contributes to fixed costs and profit, not the sum of unit variable and fixed costs.

The Sum of Unit Variable and Fixed Costs Is Used