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):
- Sunk cost.
- Period cost.
- Incremental cost.
- Pocket cost.
- Discount cost.
Solution
To identify the correct answer from the provided options regarding the additional cost from selecting a certain course of action, let's analyze each term:
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Sunk Cost: This refers to a past cost that has already been incurred and cannot be recovered. It is not relevant to current decision-making regarding additional costs.
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Period Cost: This is an expense that is not tied to the production of goods or services and is usually related to a specific time period, such as rent and salaries. It does not specifically relate to additional costs from selecting a new course of action.
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Incremental Cost: This is the additional cost incurred when choosing one alternative over another. It directly reflects the cost change as a result of a specific decision.
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Pocket Cost: This term is not widely recognized in economic or accounting terminology related to costs.
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Discount Cost: This does not accurately describe a type of cost in terms of decision-making.
Based on the definitions, the most fitting choice that describes the additional cost from selecting a certain course of action is Incremental Cost.
Final Answer
Incremental cost.
Similar Questions
An additional cost from selecting a certain course of action is a(n):Multiple ChoiceSunk cost.Period cost.Incremental cost.Pocket cost.Discount cost.
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