Question

Even when done properly, the total cost and incremental cost approaches to choosing between alternatives will sometimes yield different answers.

1) True
2) False

Answer 1

True. The total cost and incremental cost approaches to choosing between alternatives can yield different answers.

Step-by-step explanation:

True. Even when done properly, the total cost and incremental cost approaches to choosing between alternatives will sometimes yield different answers. The total cost approach takes into account all costs associated with an alternative, including fixed costs and variable costs. On the other hand, the incremental cost approach focuses only on the additional cost incurred when choosing one alternative over another. Since these approaches consider different factors, it is possible for them to lead to different conclusions.