When Excess Capacity Exists, the Only Relevant Cost Associated with a Special

question 113

Multiple Choice

When excess capacity exists, the only relevant cost associated with a special order will usually be which cost?

• A) Fixed cost
• B) Variable cost
• C) Administrative cost
• D) Allocated fixed cost

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Definitions:

Liverworts

Non-vascular plants belonging to the division Marchantiophyta, characterized by flat, leaf-like structures on their surface and found in moist, shaded environments.

Thallus

(Pl., thalli) The simple body of an alga, fungus, or nonvascular plant that lacks roots, stems, or leaves (e.g., a liverwort thallus or a lichen thallus).

Archegonia

The female reproductive organ in ferns, mosses, and some gymnosperms, where the egg cell is produced and fertilization occurs.

Sperm

Male reproductive cells designed to fertilize female eggs in sexual reproduction.