Which of the following would not be a relevant cost in a special order of expensive clocks?
A)Direct materials
B)Direct labor
C)Variable overhead
D)Fixed overhead

Question

Quizplus · Accepted Answer

Fixed overhead costs are irrelevant in a special order decision as they would not be affected by the order and would be incurred regardless of the decision to accept or reject the order. Direct materials, direct labor, and variable overhead costs would all be relevant in determining the cost of producing the special order.

Which of the Following Would Not Be a Relevant Cost