Which of the following costs would be relevant in deciding whether to accept a special order?
A)Direct material
B)Variable overhead
C)Both direct material and variable overhead
D)Neither direct material nor variable overhead

Question

Quizplus · Accepted Answer

Both direct material and variable overhead costs are relevant when considering a special order. These costs will need to be compared to the revenue generated from the special order to determine whether it would be profitable to accept.

Which of the Following Costs Would Be Relevant in Deciding