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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

Question

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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Solution

The correct answer is C. Differential Revenue. This term refers to the difference in revenue between two different courses of action. It is used to compare the potential revenue of different business decisions.

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