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:

Material Price Variance

The difference between the actual cost of materials and the expected (standard) cost, multiplied by the quantity of materials purchased.

Deliberate Inefficiency

Intentionally lowering productivity or efficiency for strategic reasons, such as reducing the risk of job cuts.

Work In Process

Inventory that includes goods in the middle of the manufacturing process but not yet completed.

Materials Used

The raw materials and components consumed in the manufacturing or production process to create a finished product.