A decrease in the cost of goods sold is an example of an incremental cash flow.

Name: A decrease in the cost of goods sold is an example of an incremental cash flow.
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Question

Quizplus · Accepted Answer

A decrease in the cost of goods sold directly affects a company's cash flow by reducing expenses, thereby increasing the cash available. Incremental cash flow refers to the additional cash flow a company receives from taking on a new project or making a decision that alters its cash inflows or outflows.

A Decrease in the Cost of Goods Sold Is an Example