(Solved):An additional cost that is incurred only if a particular action is taken is a(n): A. Period cost…

 

Question

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

 

EXPERT ANSWER

The answer is D. Incremental cost.

Incremental costs that are incurred only is a particular item is taken. Examples of incremental analysis is performed in analysis for business decisions to decide is a job should be accepted or rejected, if an asset should be purchased or sold, or

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