Asked by Lavkush Tamrakar on Jul 22, 2024
Verified
An additional cost incurred only if a particular action is taken is a(n) :
A) Period cost.
B) Pocket cost.
C) Discount cost.
D) Incremental cost.
E) Sunk cost.
Incremental Cost
The additional cost associated with producing one more unit of a product or service.
Period Cost
Costs that are not directly tied to the production process and are expensed in the period in which they are incurred.
- Distinguish and sort expenses relevant to specific business actions, encompassing sunk costs, incremental expenses, and opportunity costs.
Verified Answer
ML
MA. LORIE FE BARITUAJul 23, 2024
Final Answer :
D
Explanation :
Incremental cost is the cost that is incurred only if a particular action is taken. It is also known as differential cost or marginal cost. The other choices are not related to this concept.
Learning Objectives
- Distinguish and sort expenses relevant to specific business actions, encompassing sunk costs, incremental expenses, and opportunity costs.