An additional cost, incurred for some specific activity to bring processed product on to next production stage is
A. partial cost
B. relevant cost
C. incremental cost
D. irrelevant cost
Answer: Option C
Solution(By Examveda Team)
An additional cost, incurred for some specific activity to bring processed product on to next production stage is incremental cost. Incremental cost also referred to as marginal cost, is the total change a company experiences within its balance sheet or income statement due to the production and sale of an additional unit of product.Related Questions on Costing
Basic objective of cost accounting is ________
A. tax compliance.
B. financial audit.
C. cost ascertainment.
D. profit analysis.
Process costing is suitable for ________.
A. hospitals
B. oil refing firms
C. transport firms
D. brick laying firms
The cost which is to be incurred even when a business unit is closed is a _____.
A. imputed cost
B. historical cost
C. sunk cost
D. shutdown cost
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