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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

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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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The amount of increase or decrease in revenue that is expected from a particular course of action as compared with an alternative is The amount of increase or decrease in revenue that is expected from a particular course of action as compared with an alternative is A. manufacturing margin B. differential cost C. differential revenue D. contribution margin

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