For the Case of an Electric Car Project,the Following Costs

question 69

Multiple Choice

For the case of an electric car project,the following costs should be treated as incremental costs when deciding whether to go ahead with the project EXCEPT:

• A)the consequent reduction in sales of the company's existing gasoline models (i.e.,incidental effects).
• B)interest payments on debt incurred to finance the project.
• C)the value of tools that will be transferred to the project from the company's existing plants instead of being sold.
• D)the expenditure on new plants and equipment.

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Definitions:

Main Effects

The direct impact of independent variables on dependent variables in factorial research, not accounting for interactions between variables.

Interaction Effects

In statistical models, the combined effect of two or more independent variables on a dependent variable that is different from their individual effects.

Factorial Research

A type of experimental research design that involves multiple independent variables and examines their main effects as well as the interaction effects between them.