The decision to accept additional business should be based on a comparison of the incremental (differential) costs of the added production with the additional revenues to be received.

Question

Quizplus · Accepted Answer

This statement is true. To make informed decisions about accepting additional business, a company should consider the incremental costs of producing more goods or providing more services and compare them to the additional revenues that they would receive. This analysis helps ensure that the business will be profitable and avoid taking on unprofitable ventures.

The Decision to Accept Additional Business Should Be Based on a Comparison