An incremental cost is A. a cost that has already been incurred B. always related to fixed costs C. the difference in total costs between two alternatives D. an additional total cost for an activity

Respuesta :

Answer:

D. an additional total cost for an activity

Explanation:

Incremental costs are the additional cost associated with taking a particular action. It is the differential costs that would result from undertaking a certain project.  Incremental cost may be described as the marginal costs that result from the production or sales of an extra unit.

A business planning and analysis team will always consider the incremental costs before undertaking a particular activity. An analysis of incremental cost help ascertains the viability of a project or a business unit. A firm will make losses if the incremental cost exceeds incremental revenue.

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