Question

Which of the following are ways in which to calculate the benefit of selecting one alternative over another? An analysis that looks at just the sunk costs of each of the two alternatives. An analysis that looks at all costs and benefits and identifies those that are differential. An analysis that just looks at the relevant costs and benefits. The difference between the net operating income for the two alternatives.

Answer 1

Answer:

Which of the following are ways in which to calculate the benefit of selecting one alternative over another?

-An analysis that just looks at the relevant costs/benefits  and identifies those that are differential

-the difference between the net operating income for the two alternatives

-an analysis that looks at all costs and benefits and identifies those that are differential

Explanation:

The beginning of wisdom in using accounting for decision-making is a clear understanding that the relevant costs and revenues are those which as between the alternatives being considered are expected to be different in the future.