In Considering Whether to Accept a Special Order at a Price

question 87

Multiple Choice

In considering whether to accept a special order at a price less than the normal selling price of the product and where the additional sales will make use of present idle capacity, which of the following costs will not be relevant?

• A)direct labor.
• B)direct materials.
• C)variable manufacturing overhead.
• D)fixed manufacturing overhead that cannot be avoided.

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Definitions:

Axis of Evil

A political term used by U.S. President George W. Bush to describe governments that he believed were sponsoring terrorism and seeking weapons of mass destruction, notably Iran, Iraq, and North Korea.

Coalition of the Willing

A term used to describe a group of nations that unite, forming a military or political alliance, often for specific interventions or actions, such as the 2003 invasion of Iraq led by the United States.

Public Schools

Educational institutions that are operated by government funding and are typically provided free of charge to students.

Property Taxes

Taxes levied by local governments on property owners based on the assessed value of their property, used to fund public services.