A cost that requires a current and/or future outlay of cash, and is usually an incremental cost, is a(n):
A) Out-of-pocket cost.
B) Sunk cost.
C) Opportunity cost.
D) Operating cost.
E) Uncontrollable cost.

Question

Quizplus · Accepted Answer

An out-of-pocket cost is a cost that requires a current and/or future outlay of cash and is generally an incremental cost. It involves a cash payment, and accounting records can accurately record it.

A Cost That Requires a Current And/or Future Outlay of Cash