The stand-alone principle advocates that project analysis should be based solely on which one of the following costs?
A)sunk
B)total
C)variable
D)incremental
E)fixed

Question

Quizplus · Accepted Answer

The stand-alone principle advocates that project analysis should be based solely on incremental costs, i.e. the additional costs or benefits that are directly attributable to a particular project and would not be incurred otherwise. This helps to ensure that the project is evaluated on its own merit, without being influenced by irrelevant costs or benefits that may be associated with other projects or activities. Therefore, option D - incremental costs, is the best choice in this context.

The Stand-Alone Principle Advocates That Project Analysis Should Be Based