A company is considering a new project that will cost $19,000. This project would result In additional annual revenues of $6,000 fo the next 5 yearsof a(n):Multiple ChoiceIncremental cost.Sunk cost.Opportunity cost.Uncontrollable cost.Fixed cost. st $19,00o0. This project would result in additional annual revenues of $6,000 for the next 5 years. The $19,000 cost is an example

Incremental Cost An incremental cost or differential cost is a business planning analysis that looks…

Answered: $19,00O. This project would result In…

$19,00O. This project would result In adoditional annual revenues of $6,000 for the next 5 years. The $19,000 cost is an example

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

Question

A company is considering a new project that will cost $19,000. This project would result In additional annual revenues of $6,000 fo the next 5 years
of a(n):
Multiple Choice
Incremental cost.
Sunk cost.
Opportunity cost.
Uncontrollable cost.
Fixed cost.

st $19,00o0. This project would result in additional annual revenues of $6,000 for the next 5 years. The $19,000 cost is an example

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