238. CSO: 2C2c LOS: 2C2h The loss of a key customer has temporarily caused Bedford Machining to have some excess manufacturing capacity. Bedford is considering the acceptance of a special order, one that involves Bedford’s most popular product. Consider the following types of costs. I. Variable costs of the product II. Fixed costs of the product III. Direct fixed costs associated with the order IV. Opportunity cost of the temporarily idle capacity Which one of the following combinations of cost types should be considered in the special order acceptance decision? a. I and II. b. I and IV. c. II and III. d. I, III, and IV.

2C2H THE LOSS OF A KEY CUSTOMER HAS TEMPORARILY CAUSED BEDFORD MACHIN...

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238.

CSO: 2C2c

LOS: 2C2h

The loss of a key customer has temporarily caused Bedford Machining to have some

excess manufacturing capacity. Bedford is considering the acceptance of a special order,

one that involves Bedford’s most popular product. Consider the following types of costs.

Variable costs of the product

II.

Fixed costs of the product

III.

Direct fixed costs associated with the order

IV.

Opportunity cost of the temporarily idle capacity

Which one of the following combinations of cost types should be considered in the

special order acceptance decision?

I and II.

I and IV.

II and III.

I, III, and IV.