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  • Differential Costs

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    elainemarzan09
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    Differential costs refer to the difference in cost between two alternative business decisions. It occurs when a business faces multiple similar options and must choose one option over the others. To determine the best option, businesses compare the differential costs of each alternative to pick the most cost-effective choice.

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    Differential costs refer to the difference in cost between two alternative business decisions. It occurs when a business faces multiple similar options and must choose one option over the others. To determine the best option, businesses compare the differential costs of each alternative to pick the most cost-effective choice.

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    © All Rights Reserved
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    1 views1 page

    Differential Costs

    Uploaded by

    elainemarzan09
    Differential costs refer to the difference in cost between two alternative business decisions. It occurs when a business faces multiple similar options and must choose one option over the others. To determine the best option, businesses compare the differential costs of each alternative to pick the most cost-effective choice.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 1

    Differential Costs

    - refers to the difference between the cost of two alternative decisions.


    - occurs when a business faces several similar options, and a choice must be made by picking one option and dropping the other.

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