An additional cost from selecting a certain course of action is a(n):Multiple ChoiceSunk cost.Period cost.Incremental cost.Pocket cost.Discount cost.
Question
An additional cost from selecting a certain course of action is a(n):Multiple ChoiceSunk cost.Period cost.Incremental cost.Pocket cost.Discount cost.
Solution
The correct answer is: Incremental cost.
This is because an incremental cost is an additional cost that arises from choosing a particular course of action. It is the difference in total costs that will arise from the selection of one alternative over another. Sunk costs, on the other hand, are costs that have already been incurred and cannot be recovered. Period costs are not directly tied to production output. Pocket costs are out-of-pocket expenses for items or services. Discount costs are reductions in costs.
Similar Questions
costs, also called differential costs, are the additional costs from selecting a certain course of action.
A cost that cannot be avoided or changed because it arises from a past decision, and is irrelevant to current and future decisions, is called a(n):Multiple ChoiceSunk cost.Uncontrollable cost.Incremental cost.Out-of-pocket cost.Opportunity cost.
A cost that requires a future outlay of cash and is relevant for decision making, is a(n):Multiple ChoiceOperating cost.Out-of-pocket cost.Uncontrollable cost.Sunk cost.Opportunity cost.
A relevant cost is a cost that is a(n):Group of answer choicesfuture costnon-cash expensesunk costpast cost
Explain the additional circumstance(s) you selected, including annual amounts paid for or additional cost
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