Subtracting the Costs of One Alternative from the Costs of the Other

question 127

Multiple Choice

Subtracting the costs of one alternative from the costs of the other alternative would be called the ____________ cost.

• A)sunk
• B)imported
• C)differential
• D)alternative

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Definitions:

Capacity Analysis

The act of determining the amount of production capability needed by an organization to meet its products' shifting demands.

Activity-Based Costing

An accounting technique that pinpoints activities within a company and allocates the expenses of each activity to every product and service based on their actual usage.

Activity Cost Pool

A collection of all costs associated with a particular business activity or group of activities.

Resource Consumption

The use of resources, such as time, materials, and labor, in the production of goods or the provision of services.