Value is created if a project's
A)incremental costs exceed incremental benefits.
B)incremental costs equal incremental benefits.
C)incremental benefits exceed incremental costs.
D)none of the above.

Question

Quizplus · Accepted Answer

Value is created when incremental benefits exceed incremental costs. This means that the benefits gained from the project are greater than the costs incurred to implement it, resulting in a positive return on investment. If incremental costs exceed benefits, the project is not worth pursuing as it would result in a negative return. If incremental costs equal incremental benefits, there is no value added to the project, and it can be considered a break-even project.

Value Is Created If a Project's