When Deciding to Accept or Reject a Special Order, Which

question 94

Multiple Choice

When deciding to accept or reject a special order, which of the following costs is most likely to be irrelevant?

• A)The wages of direct labor to make the order
• B)Depreciation on the machinery used to make the order
• C)The raw material used to make the order
• D)The electricity used to run the machine to make the order

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Definitions:

Misery Index

An economic indicator created by adding the unemployment rate to the inflation rate, intended to measure economic discomfort.

Year

A period of time equal to 365 days, or 366 in leap years, used for calculating time in calendar terms.

Recession

An interim period of economic fallback, where there’s a noticeable dip in commercial and industrial outputs, customarily marked by a decrease in GDP in two successive quarters.

Depression

a severe and prolonged downturn in economic activity, characterized by significant fall in spending and high unemployment.