The amount of increase or decrease in cost that is expected from a particular course of action as compared with an alternative is A. period cost B. differential cost C. discretionary cost D. product cos
Question
The amount of increase or decrease in cost that is expected from a particular course of action as compared with an alternative is A. period cost B. differential cost C. discretionary cost D. product cos
Solution
The correct answer is B. Differential cost. This term refers to the difference in total cost that will arise from the choice of one alternative over another. It is used in management accounting, where it aids in decision-making processes.
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