Incremental costs are the ________ generated by a proposed alternative.
A) additional revenues
B) additional revenues or reduced costs
C) reduced costs
D) additional costs or reduced revenues

Question

Quizplus · Accepted Answer

Incremental costs are the additional costs or reduced revenues generated by a proposed alternative. They are the costs that would not have been incurred if the proposed alternative had not been considered or implemented. It is important to consider incremental costs when making business decisions in order to determine the true cost or benefit of a proposed alternative.

Incremental Costs Are the ________ Generated by a Proposed Alternative