Indicate whether each of the following statements is true or false.Accepting a special order will usually involve incurring product-level costs._____An outsourcing decision typically affects unit-level and batch-level costs but not product-level costs._____Eliminating a business segment often allows a company to avoid some facility-level costs._____Classifying a cost as unit-level, batch-level, product-level, or facility-level is based primarily on the dollar amount of the cost._____Facility-level costs generally are not relevant in special order decisions._____
What will be an ideal response?
| Accepting a special order will usually involve incurring product-level costs. | F |
| An outsourcing decision typically affects unit-level and batch-level costs but not product-level costs. | F |
| Eliminating a business segment often allows a company to avoid some facility-level costs. | T |
| Classifying a cost as unit-level, batch-level, product-level, or facility-level is based primarily on the dollar amount of the cost. | F |
| Facility-level costs generally are not relevant in special order decisions. | T |
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