An additional cost that is 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.

Question

Quizplus · Accepted Answer

An additional cost that is incurred only if a particular action is taken is called an incremental cost. Incremental costs are also known as differential costs, which is the difference between the costs of two alternative decisions or the change in total costs resulting from a particular business decision.

An Additional Cost That Is Incurred Only If a Particular