Part of 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

Yes, this statement is true. Before accepting additional business, it's important to calculate the incremental (differential) costs of the added production and compare it with the additional revenues that will be generated. This will help determine if the new business will be profitable or not.

Part of the Decision to Accept Additional Business Should Be