An additional cost incurred only if a company pursues a particular course of action is a(n):
A)Period cost.
B)Pocket cost.
C)Discount cost.
D)Incremental cost.
E)Sunk cost.

Question

Quizplus · Accepted Answer

An incremental cost is an additional cost incurred only if a company pursues a particular course of action. It is important in decision-making as it helps in determining whether the monetary benefits of a particular decision outweigh its incremental costs.

An Additional Cost Incurred Only If a Company Pursues a Particular