Fill in the Blank QuestionFill in the blank question.Incremental is incremental revenues minus incremental costs.
Question
Fill in the Blank Question
Fill in the blank question.
Incremental
is incremental revenues minus incremental costs.
Solution
The blank can be filled with the term "profit."
Explanation
In the context of business and finance, incremental profit refers to the additional profit that a company makes from increasing its sales by producing and selling more units or offering new products or services. It is calculated as the difference between the incremental revenues (the additional income received from sales) and the incremental costs (the additional expenses incurred to produce the additional goods or services). This concept helps businesses understand the potential financial impact of their decisions regarding pricing, cost management, and production levels. By analyzing incremental profit, companies can make more informed decisions about scaling their operations or entering new markets.
Similar Questions
Fill in the Blank QuestionFill in the blank question.Incremental or differential costs are costs in making decisions.
7) If the incremental method were used, what amount of cost would be allocated to the start-upbusiness?A) $20,000B) $54,000C) $60,000D) $74,000
The incremental cost of building the next unit of a good is called the:Group of answer choicesmarginal costLaw of One Pricefixed costvariable cost
Multiple Choice QuestionTotal revenue less (that is, minus) total cost is known asMultiple choice question.elasticity.income.demand.profit.
A change in aggregate demand equals the multiplier times the initial change in expenditures.
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