The Term Incremental Cost Refers To

question 54

Multiple Choice

The term incremental cost refers to:

• A) the difference in total costs between alternatives.
• B) the operating profit forgone by selecting one choice instead of another.
• C) a cost that continues to be incurred even though there is no activity.
• D) a cost that is directly traceable to a specific cost object.

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Definitions:

International Environment

The global context within which organizations operate, including economic, social, cultural, and political factors.

Future Orientation

The degree to which individuals or organizations plan for and consider future outcomes in their decision-making processes.

National Culture

The set of norms, behaviors, beliefs, and customs that exist within the population of a sovereign nation.

Geert Hofstede

A Dutch social psychologist known for his research on the comparisons of cultures across nations, leading to the development of his cultural dimensions theory.