What are additional costs that arise from changes or delays in one activity affecting others known as?

Additional costs that arise from changes or delays in one activity affecting others are known as consequential costs. These costs typically occur as a direct result of an event, such as a delay or modification in a project, impacting subsequent activities. The implications might include increased labor costs, equipment rental fees, or extended project timelines, all influenced by the disruptions in the original workflow.

In contrast, direct costs refer to expenses that can be directly attributed to a specific project or activity, such as materials and labor specifically used for that project. Variable costs fluctuate with the level of output or activity and can include costs like utilities or raw materials that increase as production scales. Overhead costs encompass general administrative expenses that are not directly tied to a specific project or activity, such as salaries of administrative staff or office rent. These definitions help clarify the distinction between the types of costs involved, highlighting why consequential costs is the correct response.