Incremental cash flows are relevant for decision-making.

Question

Quizplus · Accepted Answer

Incremental cash flows represent the additional cash flows that a particular decision will generate. These incremental cash flows are relevant for decision-making because they provide a more accurate picture of the expected financial impact of the decision. By analyzing the incremental cash flows, decision-makers can evaluate the potential benefits and costs of different options and choose the one that maximizes value.

Incremental Cash Flows Are Relevant for Decision-Making