Which of the following statements is false? When computing the incremental earni

Question

Which of the following statements is false? When computing the incremental earnings of an investment decision, we should include all changes between the form's earnings with the project versus without the project. Sunk costs are incremental with respect to the current decision regarding the project and should be included in its analysis. Overhead expenses are associated with activities that are not directly attributable to a single business activity but instead affect many different areas of the corporation. Because value is lost when a resource is used by another project we should include the opportunity cost as an incremental cost of the project.

Explanation / Answer

B is correct

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