(Solved):A proposed project will require the use of ten machines in a company. Each machine has five…

 

Question

A proposed project will require the use of ten machines in a company. Each machine has five alternative uses. What is the simplest way to evaluate the desirability of the project?

A) incremental analysis

B) cost-volume-profit analysis

C) opportunity cost approach

D) scarce resource approach

 

EXPERT ANSWER

Answer: A) incremental analysis

When you are selecting between alternatives, the cost implications and future benefits of each project is compared. Usually, all relevant cost are considered. This method is

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