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

Question

Quizplus · Accepted Answer

This statement is true. Businesses should always consider the costs and benefits of accepting additional business before making a decision. Incremental costs include any additional costs associated with producing more products or providing more services, such as hiring more staff or purchasing more supplies. Additional revenues are any income generated from the added business, such as sales or service fees. By comparing the incremental costs with the additional revenues, businesses can determine whether it is profitable to accept the additional business or not.

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