Which of the Following Costs Is Least Likely to Be

question 52

Multiple Choice

Which of the following costs is least likely to be relevant in deciding whether to accept a special order?

• A) Variable direct labor costs
• B) Variable selling costs
• C) Fixed manufacturing overhead
• D) Variable packaging and shipping costs

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Definitions:

Preferences

In economics, this refers to the subjective tastes and likes of individuals, which influence their choices among various goods and services.

Prices

The financial amount expected, required, or supplied as remuneration for an item.

Income

Money received on a regular basis from work, property, investments, business ventures, and other sources, used to fund consumption and savings.

Laspeyres Index

A price index used to measure the change in the cost of purchasing a fixed basket of goods and services of the same type and quantity over time.