Ask Question
BusinessBusiness
24 October, 10:27

Part of the decision to accept additional business should be based on a comparison of the incremental (differential) costs of the added production with the additional revenues to be received.

True or False

+2
Answers (1)
  1. 24 October, 12:03
    0
    TRUE

    Explanation:

    Marginal Benefit is addition to total benefit due to a business decision.

    Marginal Cost is addition to total cost due to a business decision.

    Marginal Benefit & Marginal Costs are determinants while considering a business decision. A decision will be taken if : Marginal Benefit ≥ Marginal Cost, as entrepreneurial decision maker would be better off or at least neutral while taking decision. If MB < MC, it is loss making for the entrepreneur to take that decision & hence is discouraged to take that.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Part of the decision to accept additional business should be based on a comparison of the incremental (differential) costs of the added ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
On January 1, Ripken Corporation had 40,000 shares of $10 par value common stock outstanding. On March 17 the company declared a 10% stock dividend to stockholders of record on March 20. Market value of the stock was $13 on March 17.
Answers (1)
Which of the following are ways that domestic residents can receive income-based payments from foreigners? (Check all that apply. ) a. Apple corporation pays a stock dividend to a resident of India. b.
Answers (1)
Unconventional monetary policy, followed during and after the financial crisis and recession 2007-present does NOT include which of the following A. expanding open market purchases and the money supply even when short-term interest rates are zero B.
Answers (1)
Consider the following accounts: Dividends Insurance Expense Cash Service Revenue How many of these accounts are increased with credits?
Answers (1)
You want to open a savings account. There are five banks located in your area. The rates paid by banks A through E, respectively, are given below. Which bank should you select if your goal is to maximize your interest income?
Answers (1)
New Questions in Business
You have been offered a unique investment opportunity. If you invest $10,000 today, you will receive $500 one year from now, $1,500 two years from now, and $10,000 ten years from now.
Answers (1)
Save the Animals is a conservation organization that qualifies under §501 (c) (3). Save the Animals made $14 million in exempt purpose expenditures and $900,000 in lobbying expenditures.
Answers (1)
What does it mean to exchange national boundaries?
Answers (1)
The Green Tomato purchased a parcel of land six years ago for $299,500. At that time, the firm invested $64,000 grading the site so that it would be usable.
Answers (1)
What percentage of the Department of Transportation's budget is for winter road maintance? A: 20% B: 30% C: 5% D: 46%
Answers (2)
Home » Business » Part of the decision to accept additional business should be based on a comparison of the incremental (differential) costs of the added production with the additional revenues to be received. True or False
Sign Up Forgot Password?