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:

Quantity Supplied

The level of goods or services available for sale by producers, who are willing and able to provide them, at a predetermined price over an agreed period.

Excess Supply

A market condition where the quantity of a good supplied is greater than the quantity demanded at the current price.

Equilibrium Price

The price at which the quantity of a good or service demanded meets the quantity supplied, resulting in market balance.

Quantity Demanded

The total amount of a good or service that consumers are willing to purchase at a given price level.