Which of the following typically would be considered an incremental cost?
A)Fixed cost
B)Direct product cost
C)Sunk cost
D)Administrative overhead cost

Question

Quizplus · Accepted Answer

Direct product cost is typically considered an incremental cost because it is directly related to the production of a specific product. Incremental costs are costs that vary with a specific decision, such as producing an additional unit of a product. Fixed costs, sunk costs, and administrative overhead costs are not considered incremental costs because they do not vary with specific decisions.

Which of the Following Typically Would Be Considered an Incremental