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Figure 34-3.
-Refer to Figure 34-3.Which of the following sequences (numbered arrows) shows the logic of the interest-rate effect?
Incremental Revenues
Additional income received from a particular action or decision, beyond what was previously earned.
Incremental Costs
Additional costs that result from increasing production or engaging in a new activity, often used in decision-making processes.
Operating Capacity
The maximum level of activity that a company can sustain with its current resources and infrastructure.
Out-of-pocket Cost
Expenses that require immediate cash payment by an individual or company.
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