In Considering Whether to Accept a Special Order at a Price

question 87

Multiple Choice

In considering whether to accept a special order at a price less than the normal selling price of the product and where the additional sales will make use of present idle capacity, which of the following costs will not be relevant?

• A)direct labor.
• B)direct materials.
• C)variable manufacturing overhead.
• D)fixed manufacturing overhead that cannot be avoided.

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Definitions:

Moving Magma

The flow of molten rock beneath or on the Earth’s surface, which can create volcanic eruptions when it reaches the surface.

Indonesian Earthquake

A seismic event occurring in Indonesia, a region prone to earthquakes due to its position on the Pacific Ring of Fire.

Indian Ocean

The world's third-largest ocean, bounded by Asia, Africa, and Australia, known for its significant impact on climate and weather patterns.

Eastern Coast

The area where the land meets the ocean on the eastern side of a landmass.