Cost Accounting Question:
Define net incremental cash flows in cost accounting?
Answer:
Net incremental cash flows are the combination of the cash inflows and the cash outflows occurring in the same time period, and between two alternatives. For example, a company could use the net incremental cash flows to decide whether to invest in new, more efficient equipment or to retain its existing equipment.
Previous Question | Next Question |
Define variable cost? | Define incremental cost? |