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    This posting addresses special order decisions.

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    Which of the statements below is false regarding special order decisions?

    1. A fixed cost element of an identical amount that is common among all alternatives is essentially irrelevant.

    2. Fixed cost per unit is equal to total fixed costs divided by a selected volume level.

    3. The contribution approach offers more detailed information than does the absorption approach.

    4. Fixed cost per unit is a necessary piece of information in the decision making process

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    1. A fixed cost element of an identical amount that is common among all alternatives is essentially ...

    Solution Summary

    The solution provides the correct answer for which statement is false regarding special order decisions. References are also provided.

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