In incremental analysis
A) costs are not relevant if they change between alternatives.
B) all costs are relevant if they change between alternatives.
C) only fixed costs are relevant.
D) only variable costs are relevant.

Question

Quizplus · Accepted Answer

In incremental analysis, all costs that change between alternatives are relevant. This includes both fixed and variable costs. Therefore, option B is the correct answer. Options A, C, and D are incorrect as they suggest that only certain types of costs are relevant, while incremental analysis considers all costs that change.

In Incremental Analysis