Which of the Following Best Describe the Term Marginal Cost

question 240

Multiple Choice

Which of the following best describe the term marginal cost or incremental cost.

• A) Investigation of what happens to NPV when only one variable is changed.
• B) The determination of what happens to NPV estimates when we ask what-if questions.
• C) The degree to which a firm or project relies on fixed costs.
• D) The change in costs that occurs when there is a small change in output.
• E) Taking into account the managerial options that are implicit in a project.

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Definitions:

Total Quality Management

A management approach centered on continuous improvement, focusing on customer satisfaction and aligning all employees toward common goals.

Divisional Recognition

Acknowledgment or awards given to specific segments or departments within an organization for their achievements or performance.

Sub-Functional Work Group

A division or team within a functional area of an organization tasked with a specific operation or set of tasks related to the broader function of the area.

Reactive Problem Solving

An approach to problem-solving that involves responding to issues only after they have occurred, rather than anticipating them in advance.