An Additional Cost Incurred Only If a Particular Action Is

question 56

Multiple Choice

An additional cost 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.

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Definitions:

Flexible Budget

A budget that adjusts or flexes with changes in activity or volume levels.

Revenue and Spending Variance

The deviation between actual and budgeted figures for both income and expenditures, providing insight into financial performance.

Tenant-Days

A measure used in property management, indicating the total number of days within a period that rental units were occupied.

Flexible Budget Performance Report

A financial report that compares actual results to a budget that adjusts based on the level of output or activity.