Question
In an analysis to determine if a special project should be completed, which costs are considered relevant, I have chosen the following? Variable Costs: Direct
In an analysis to determine if a special project should be completed, which costs are considered relevant, I have chosen the following? Variable Costs: Direct Labor, Direct Material, Variable cost per unit, fixed cost per unit, average unit cost (which is fixed cost + average cost). I have not chosen fixed costs of manufacturing and marketing.
Are variable cost per unit and fixed cost per unit relevant cost or do those cost exist even if the special project is not completed, they are just allocated to other units instead?
Hopefully this question makes sense. Let me know if it doesn't.
Thanks!
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