Desmond owns a restaurant and is considering buying his desserts from a local bakery rather than continuing to hire a pastry chef for this purpose.When he performs an incremental analysis,which of the following would be considered an incremental cost?

Question

Quizplus · Accepted Answer

The incremental cost in this scenario would be the cost of the pastry chef's wages since this cost would be eliminated if Desmond decides to buy desserts from a local bakery instead of hiring a pastry chef. The other costs listed are not incremental costs as they would continue to be incurred regardless of whether Desmond hires a pastry chef or buys desserts from a bakery.

Desmond Owns a Restaurant and Is Considering Buying His Desserts