Incremental costs can be defined as:
A)Costs that are expected to increase regardless of the course of action chosen.
B)The differences between costs incurred under alternative courses of action.
C)Costs incurred in the past.
D)Costs that are irrelevant in decision making.

Question

Quizplus · Accepted Answer

Incremental costs relate to the differences in costs incurred under alternative courses of action. They are the costs that exist only as a result of choosing a particular alternative, and they therefore help in decision making. Options A, C, and D do not accurately describe incremental costs.

Incremental Costs Can Be Defined As