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Exam IIA-CIA-Part3 All Questions

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Exam IIA-CIA-Part3 topic 2 question 317 discussion

Actual exam question from IIA's IIA-CIA-Part3
Question #: 317
Topic #: 2
[All IIA-CIA-Part3 Questions]

An organization that produces backpacks of standard quality is considering manufacturing high-quality packs. Which of the following costs is most relevant when deciding whether to manufacture the new product?

  • A. Fixed costs.
  • B. Variable costs.
  • C. Conversion costs.
  • D. Incremental costs.
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Suggested Answer: D 🗳️

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emtofid
3 weeks, 5 days ago
Selected Answer: D
Incremental costs are the additional costs that an organization will incur if it decides to produce the high-quality packs. These costs help the organization evaluate whether the potential benefits and revenue from the new product will outweigh the extra expenses.
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KonradK
7 months, 2 weeks ago
Shouldn't it be A?
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