To What Does the Term Differential Cost Refer

question 8

Multiple Choice

To what does the term differential cost refer?

• A) A difference in cost that results from selecting one alternative instead of another.
• B) The benefit forgone by selecting one alternative instead of another.
• C) A cost that does not entail any dollar outlay, but which is relevant to the decision-making process.
• D) A cost that continues to be incurred even though there is no activity.

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