Which of the Following Is Not Relevant in the Decision

question 119

Multiple Choice

Which of the following is not relevant in the decision to accept a special order?

• A)Depreciation on factory equipment
• B)Variable cost of the product
• C)Sales commissions based on a percentage of the sales price
• D)Direct labor associated with the product

---

Definitions:

Tax Purposes

Refers to considerations or actions taken to comply with tax laws and regulations, often aiming to optimize tax efficiency.

Consolidated Tax Return

A single tax return filed by a parent company and its subsidiaries, treating them as one taxpayer for tax purposes.

Intra-entity Transfers

Transactions occurring between two divisions within the same company.

Gross Profits

The difference between sales revenue and the cost of goods sold, before deducting operating expenses, interest, taxes, and other costs.