The costs incurred beyond the split-off point are called

A) incremental costs.

B) by-product costs.

C) split-off point costs.

D) joint product costs.

 

 The term incremental cost refers to

A) a cost that constitutes expenses to be incurred even though there is no activity.

B) the profit forgone by selecting one choice instead of another.

C) the difference in total costs between alternatives.

D) a cost that does not entail any dollar outlay but that is relevant to the decision-making process.