In deciding whether to accept a special sales order which of the following costs are likely relevant?
A) Depreciation expense on manufacturing equipment.B) A portion of facilities-level costs.C) A portion of batch-level costs.D) Total batch-level costs.E) An allocated share of fixed manufacturing support costs.

Question

04-01-2021
Business

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In deciding whether to accept a special sales order which of the following costs are likely relevant?
A) Depreciation expense on manufacturing equipment.B) A portion of facilities-level costs.C) A portion of batch-level costs.D) Total batch-level costs.E) An allocated share of fixed manufacturing support costs.

Sagot :

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Answer:

C) A portion of batch-level costs.

Explanation:

A special sales order is defined as a single time opportunity for the firm or for the business to sell a specific quantity of a product or a service in the market. It mainly comes from the customers directly and not from the various distribution channels or through other normal sales.

A special sales order is typically unexpected.

A batch level cost is the amount or price which is related to the group of units.

In determining whether to accept the special order sales or to reject the special sales order, a portion of the batch level cost is more relevant to the decision.

Sagot :

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