ExamVeda
Login
Home

Difference of cost which occurs while considering alternatives can be classified...

This question belongs to Management Management Accounting
Management Accounting
?

Difference of cost, which occurs while considering alternatives can be classified as

Answer & Solution
Correct Answer: Option D
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.
Examveda
Question posted by Examveda
Community

Join the Discussion

No comments yet Be the first to discuss this question.
Keep Learning

Related Questions on Management Accounting

In value chain analysis, coordination, acquiring and assembling of resources to produce a product is classified as
A. resourcing B. value acquiring C. production D. value acquaintance
Examining of past performance, exploring alternative and planning future is
A. learning B. alternating C. examining D. deciding
Time that a company takes to create and produce a new product is classified as
A. management factor B. time factor C. customer factor D. chain factor
Purpose of management accounting is to
A. past orientation B. help banks make decisions C. help managers make decisions D. help investors make decision
More Related Questions on Management Accounting