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Relevant costs: reduced selling price

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What relevant costs might you consider in deciding whether to accept an order at a reduced selling price? What costs would you not consider when making your decision? Why are these costs not relevant?

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Solution Summary

Your tutorial is 207 words and gives you several examples of relevant and not relevant along with the "rule" for deciding.

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Relevant costs are incremental costs, such as materials, labor, and supplies needed to complete the order. Relevant costs are also any costs that are new to the order, such as any special tools or customization needed for the order. I would also consider any profit ...

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Carol Sargent, PhD
Education
  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
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