The Term Differential Cost Refers To

question 56

Multiple Choice

The term differential cost refers to:

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

---

Definitions:

Chapter 7

A provision under the US Bankruptcy Code for the process of liquidation, where a debtor's assets are sold to pay off creditors.

Dischargeable

Pertaining to debts, a condition under which debts can be legally released or forgiven, often in the context of bankruptcy.

Hardship Discharge

A release from certain types of obligations or debts due to extreme financial difficulty, often in a bankruptcy context.

Chapters 7

A reference to Chapter 7 of the United States Bankruptcy Code, which provides for the liquidation of a debtor's assets to pay off creditors.