A Department Accepts a New Order from a Customer

question 39

Multiple Choice

A department accepts a new order from a customer. It has already incurred £100 for design costs. It has also incurred costs of £200 for visits by sales staff. If the order is accepted a quality inspector will be transferred from another department. The inspector earns £20,000 per year. If the order is accepted there will be additional training costs of £700.
-In this decision the differential costs total:

• A)£0.
• B)£300.
• C)£20,700.
• D)£700.