When Choosing Between Alternatives, the Contribution Margin of the Next

question 68

Multiple Choice

When choosing between alternatives, the contribution margin of the next best alternative is called

• A)incremental revenue.
• B)opportunity cost.
• C)sunk cost.
• D)incremental analysis.

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Definitions:

Equation

A mathematical statement that asserts the equality of two expressions, usually connected by an equals sign.

Line

A line is described as a shape with no thickness that goes on infinitely in two opposite directions and is one-dimensional.

Linear Inequalities

Mathematical expressions involving linear expressions in one or more variables where the expressions are not equal but related by less than (<), greater than (>), less than or equal to (≤), or greater than or equal to (≥).