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

question 31

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 of these is true.
• D) Both of these are true.

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