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):

Sunk cost.

Fixed cost.

Incremental cost.

Uncontrollable cost.

Opportunity cost.

Incremental cost is an additional cost or expense incurred by the company as a result of the change in activities. It is also known as differential costs which is sometimes a relevant cost in some short decision making process between two alternatives. The company plans to incur an additional cost to make a new project that would possibly results to an additional income in the near future.

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): Sunk cost. Fixed cost. Incremental cost. Uncontrollable cost. Opportunity cost.

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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):

Sunk cost.

Fixed cost.

Incremental cost.

Uncontrollable cost.

Opportunity cost.