Knowee
Questions
Features
Study Tools

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.
🧐 Not the exact question you are looking for?Go ask a question

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:

  1. 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.

  2. 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.

  3. 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.

  4. Pocket Cost: This term is not widely recognized in economic or accounting terminology related to costs.

  5. 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.

This problem has been solved

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.

costs, also called differential costs, are the additional costs from selecting a certain course of action.

Explain the additional circumstance(s) you selected, including annual amounts paid for or additional cost

A relevant cost is a cost that is a(n):Group of answer choicesfuture costnon-cash expensesunk costpast cost

Explicit costs are also known as (direct/opportunity) costs. (Choose an option from the ones given within parenthesis.)

1/2

Upgrade your grade with Knowee

Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.