Difference of cost, which occurs while considering alternatives can be classified as
A. dependent cost
B. independent cost
C. incremental cost
D. differential cost
Answer: Option D
Solution(By Examveda Team)
Difference of cost, which occurs while considering alternatives can be classified as differential cost. Differential cost is the difference between the cost of two alternative decisions, or of a change in output levels. The concept is used when there are multiple possible options to pursue, and a choice must be made to select one option and drop the others.This Question Belongs to Management >> Management Accounting
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