Question

The amount of increase or decrease in cost that is expected from a particular course of action as compared with an alternative is termed: Group of answer choices period cost product cost differential cost discretionary cost

Answer 1

Answer:

differential cost

Explanation:

When you are elaborating a differential cost analysis between two alternative projects or actions, you are looking for the difference in total costs between both alternatives.

For example, you might elaborate a cost analysis to decide whether to continue or stop the production of a certain good. What are the costs associated with stopping the production versus thee profitability of continuing the production.