The term incremental cost refers to
A)the difference in total costs between alternatives.
B)a cost that does not entail any dollar outlay but that is relevant to the decision-making process.
C)the profit forgone by selecting one choice instead of another.
D)a cost that constitutes expenses to be incurred even though there is no activity.

Question

Quizplus · Accepted Answer

Incremental cost refers to the difference in total costs between alternatives. It is the additional cost incurred by choosing one alternative over another. For example, if a company is considering two different suppliers for a product, the incremental cost would be the difference in the total cost of purchasing from each supplier.

The Term Incremental Cost Refers to