Which of the following is a key point considered in a special order decision?
A) Additional irrelevant costs associated with the special order
B) Avoidable sunk costs associated with the special order
C) The estimated benefits associated with the special order
D) The preparation of segmented income statements of the special order

Question

Quizplus · Accepted Answer

The estimated benefits associated with the special order is a key point considered in making a special order decision. This involves determining the potential sales revenue, any incremental costs required for the order, and the resulting profit or contribution margin. Option A is incorrect because irrelevant costs should be ignored in the decision-making process. Option B is also incorrect because sunk costs are irrelevant in this decision as they cannot be changed. Option D may be relevant in some cases, but it is not a key point considered in making a special order decision.

Which of the Following Is a Key Point Considered in a Special