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Which of the Following Overhead Expenses Is a Relevant, Incremental

Question 94

Multiple Choice

Which of the following overhead expenses is a relevant, incremental cash flow?


A) The project will represent 10% of the firm's revenues, so 10% of the CEO's compensation is allocated to the project.
B) The project will occupy 10% of the firm's available space, so 10% of the firm's property insurance is allocated to the project.
C) The project will increase the number of employees by 10%, so an additional human resources assistant must be hired to handle personnel issues directly related to the project.
D) None of the expenses above should be allocated to the project.

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