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In special sales order decision, the incremental costs usually do not include fixed manufacturing costs?
In special sales order decision, the incremental costs usually do not include fixed manufacturing costs?
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ChatGPT
Jun 15
Yes, that is correct. Incremental costs typically refer to the additional costs incurred as a result of accepting a special sales order, such as direct materials, direct labor, and variable manufacturing overhead. Fixed manufacturing costs, on the other hand, are not affected by changes in production levels and are therefore not considered incremental costs in special sales order decisions.