Which one of the following is the preferred alternative when deciding between two alternatives?
A)No opportunity or sunk costs exist.
B)Revenues are greater than under the other alternatives.
C)Expenses are less than under the other alternatives.
D)Incremental profit is greater than under the other alternatives.

Question

Quizplus · Accepted Answer

When deciding between two alternatives, the preferred choice is the one that generates the highest incremental profit. This means that the additional profit gained from choosing one alternative over the other is greater than any additional expenses or costs that may be incurred. Therefore, the answer is D, incremental profit is greater than under the other alternatives.

Which One of the Following Is the Preferred Alternative When