Incremental Costs Can Be Defined As

question 50

Multiple Choice

Incremental costs can be defined as:

• A)Costs that are expected to increase regardless of the course of action chosen.
• B)The differences between costs incurred under alternative courses of action.
• C)Costs incurred in the past.
• D)Costs that are irrelevant in decision making.

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Definitions:

Largest Cost

Refers to the highest expense in either a specific project or operation typically identified to assess and reduce financial outlays.

Payoff Table

A table used in decision analysis to display the outcomes of different strategies under various states of nature.

Decision Tree Model

A tool for making decisions and predicting outcomes, where choices branch into subsequent potential consequences, forming a tree-like structure.

Conditional Probability

The probability of an event occurring given that another event has already occurred.