Asked by Diolicia Bricullett on Jul 02, 2024
Verified
Differential costs can:
A) only be fixed costs.
B) only be variable costs.
C) be either fixed or variable.
D) be sunk costs.
Differential Costs
The change in total costs that results from choosing one alternative over another in decision-making processes.
- Recognize and analyze differential, sunk, and opportunity costs within the context of decision-making.
Verified Answer
VD
Vallala Divya6 days ago
Final Answer :
C
Explanation :
Differential costs can be either fixed or variable. Differential costs are the difference in costs between two alternatives or options, and can include both fixed and variable costs. Sunk costs, on the other hand, are costs that have already been incurred and are not relevant to decision making.
Learning Objectives
- Recognize and analyze differential, sunk, and opportunity costs within the context of decision-making.