The Difference in Total Costs Between Two Alternatives Is Referred

question 38

Multiple Choice

The difference in total costs between two alternatives is referred to as the

• A) incremental cost.
• B) sunk cost.
• C) opportunity cost.
• D) direct cost.

---

Definitions:

Accounts Receivable

Outstanding payments from customers for goods or services a company has already delivered.

Average Collection Period

The average number of days it takes for a business to receive payments from its customers for invoices issued, indicative of the effectiveness of a company's credit and collection policies.

Net Sales

The amount of sales generated by a company after deductions for returns, allowances for damaged or missing goods, and discounts.

Accounts Receivable

Amounts owed to a business by its customers for goods or services that have been delivered but not yet paid for.