Which of the Following Statements Regarding Differential Costs Is (Are)true

question 72

Multiple Choice

Which of the following statements regarding differential costs is (are) true? (A) The full cost fallacy occurs when a decision-maker includes fixed manufacturing overhead in the product's cost.
(B) When deciding whether or not to accept a special order,a decision-maker should focus on differential costs instead of full costs.

• A)Only A.
• B)Only B.
• C)Neither A nor B is false.
• D)Both A and B are true.

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