A company is considering a new project that will cost $19,000.This project would result in additional annual revenues of $6,000 for the next 5 years.The $19,000 cost is an example of a(n) :

A) Sunk cost.
B) Fixed cost.
C) Incremental cost.
D) Uncontrollable cost.
E) Opportunity cost.

The $19,000 cost is an incremental cost because it is a cost that will be incurred only if the new project is undertaken. It is not a sunk cost because it has not yet been incurred, and it is not a fixed cost because it varies with the level of output. It is not an uncontrollable cost because management has control over whether or not to undertake the project. Finally, it is not an opportunity cost because it does not represent the value of the next best alternative that is forgone.