A Revenue That Differs Between Alternatives and Makes a Difference

question 99

Multiple Choice

A revenue that differs between alternatives and makes a difference in decision-making is called a(n)

• A) sales revenue.
• B) incremental revenue.
• C) unavoidable revenue.
• D) irrelevant revenue.

---

Definitions:

Cost of Goods Sold

Costs directly connected to the creation of a company's sold goods, covering materials and workforce expenses.

Profit Center

A branch or division of a company that is responsible for its own revenues and expenses, and thus its own profitability.

Generates Revenues

The process of creating income for a business through various activities such as sales, services, and investments.

Cost Center

A department or segment within a business that does not directly generate revenue but incurs costs, used for performance evaluation and budgeting.