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:

Control

The process of setting standards, measuring actual performance, and taking corrective action to ensure that objectives are achieved in an organization.

Production Targets

Specific goals set for the amount of products to be produced within a certain timeframe, guiding the production process and resource allocation.

Correction Actions

Measures taken to rectify problems identified during the monitoring and controlling of a project or process.

Planning

The process of making plans for something, including strategies, operations, and resource allocation.