In Incremental Analysis

question 64

Multiple Choice

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.

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Definitions:

Profit

The financial gain that is realized when the revenue generated from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Its Shareholders

Refers to the individuals or entities that own shares in a company, thereby holding a part of its ownership.

Corporate Social Responsibility

Refers to businesses' practice of operating in an ethical and sustainable way, considering their environmental, social, and economic effects.