Which of the Following Costs Is Irrelevant in the Decision

question 218

Multiple Choice

Which of the following costs is irrelevant in the decision making of a special order when there is idle production capacity - enough excess capacity to accept the order?

• A) fixed manufacturing costs
• B) units sold
• C) material cost
• D) labor hours incurred

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Definitions:

Steering Knuckle

A pivotal component in a vehicle's steering system that connects the wheel and tire to the suspension system, allowing for steering movement.

Floating Calipers

A disc brake caliper that “floats,” or moves back and forth, on bolts in its mounting hardware when the brakes are applied.

Fixed Calipers

Brake calipers that are mounted in a stationary position with pistons arranged on opposing sides of the rotor, applying brake pressure evenly.

Drum Brake Micrometer

A tool used to measure brake drum diameter and to check for out-of-round.