Vidyalelo
Commerce · Q699

Costing

Graduate and Post Graduate · Commerce · question 699

Q699

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
Answer
D.
irrelevant cost

Answer: Option C

Solution

Answer: Option C
Solution:
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.