A company is considering a new project that will cost $19,000. This project would result in additional annual revenues of $6,000

Question

ioda

3 years ago

14

A company is considering a new project that will cost $19,000. This project would result in additional annual revenues of $6,000

for the next 5 years. The $19,000 cost is an example of a(n):

Business

1 answer:

Thepotemich [5.8K] · Answer 1 · 2021-12-29T12:24:13+03:00

Answer:

Incremental cost

Explanation:

The Incremental cost is the cost that is to be incurred for producing an additional unit of product

Here the company considered a new project which cost $19,000 so this is an example of an incremental cost as the additional cost is incurred for producing additional units

Therefore the given situation represents the incremental cost