Assume a manufacturing company is deciding whether to accept or reject a special order opportunity. Which of the following statements is true?

Multiple Choice

• The financial analysis should include an allocated amount of fixed manufacturing overhead cost.

• The financial analysis should include the incremental costs incurred to fulfill the order.

• The financial analysis should exclude all variable and fixed overhead costs because they are indirect costs.

• The financial analysis should include an allocated amount of fixed manufacturing overhead cost plus an allocated amount of the companys general administrative expenses.