Special order decisions should be made using variable costing because:

A. Only variable costs will increase as a result of the special order.
B. Variable costing includes all overhead costs in the calculation of product costs.
C. Fixed overhead costs will change as a result of the special order.
D. Special order decisions usually focus on fixed costs
E. All costs, including variable and fixed costs, must be covered by the special order pricing.


Answer: A

Business

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