Relevant incremental cash flows include
A) sales captured from the firm's competitors.
B) retained sales that would have been lost to new competing products.
C) incremental sales brought to the firm as a whole.
D) all of the above.

Question

Quizplus · Accepted Answer

Relevant incremental cash flows include all of the above options. Sales captured from competitors and retained sales that would have been lost to new competing products are both examples of incremental sales brought to the firm. All three options represent cash flows that are relevant to the decision being made.

Relevant Incremental Cash Flows Include