Sales Commissions Would Be Excluded from Special Order Decision Analysis

question 2

Multiple Choice

Sales commissions would be excluded from special order decision analysis because

• A)the customer approached the company directly.
• B)they are fixed costs and therefore irrelevant.
• C)they are administrative expenses.
• D)they are relevant variable costs.

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Definitions:

Factor

A component or element that contributes to a result or outcome.

Multiple Structures

The existence or creation of various organizational structures to support the diverse needs and strategies of a business.

Organizational Size

The magnitude of an organization based on aspects such as employee count, revenue, or operational scale.

Structure

The arrangement or organization of components into a coherent, systematic, or orderly whole.