In a Special Sales Order Decision, Incremental Fixed Costs That

question 209

Multiple Choice

In a special sales order decision, incremental fixed costs that will be incurred if the special order is accepted are considered to be

• A) relevant to the decision.
• B) irrelevant to the decision.
• C) opportunity costs.
• D) sunk costs.

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Definitions:

Appreciation

An increase in the value of an asset over time, often due to changes in market demand or supply, inflation, or other economic factors.

Market Yield

The interest rate that investors demand for buying securities currently available in the market.

Semiannually

Pertains to an event or action occurring twice a year, typically every six months.

Maturity

The period of time or deadline after which an obligation, such as a bond or loan, must be repaid in full.