In Incremental Analysis

question 137

Multiple Choice

In incremental analysis

• A) only costs are analyzed.
• B) only revenues are analyzed.
• C) both costs and revenues may be analyzed.
• D) both costs and revenues that stay the same between alternate courses of action will be analyzed.

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Definitions:

Preferred Stock

A class of ownership in a corporation with a higher claim on assets and earnings than common stock, often receiving dividends before common shareholders.

Annual Dividend

The total sum of the dividends paid to shareholders over a year, often cited per share.

Rates of Return

Financial results such as gains or losses on an investment over a predetermined time frame, expressed as a percentage of the original investment fee.

Net Cash Flows

The amount of cash that is generated or lost by a business in a given time period, calculated as cash inflows minus cash outflows.