Which of the Following Is Not a True Statement

question 133

Multiple Choice

Which of the following is not a true statement?

• A) Incremental analysis might also be referred to as differential analysis.
• B) Incremental analysis is the same as CVP analysis.
• C) Incremental analysis is useful in making decisions.
• D) Incremental analysis focuses on decisions that involve a choice among alternative courses of action.

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Definitions:

Variable Costs

Costs that change in proportion to the level of production or business activity.

Fixed Costs

Costs that do not vary with the level of production or output and are incurred even if the business is producing nothing.

Total Revenues

The gross income generated by a business through its sales activities, prior to the deduction of any operating expenses.

Average Variable Cost

The variable cost of production divided by the quantity of output produced, indicating the variable cost on a per-unit basis.