I do not agree with the given statement that is "Only variable costs can be differential costs.".
The difference in the costs of two alternative decisions is referred to as differential cost.
When a company is faced with several similar options, it must make a decision by selecting one and discarding the other.
Variable costs in cost accounting are costs that vary according to how much a company produces.
Variable costs are typically proportional to output.
As a result, the cost difference between two alternatives, rather than the fixed and variable nature of costs, is relevant for decision-making.
Hence, I disagree with the statement given in the question.
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Answer:
If Mo pays cash, the cost of the purchase will be $140.
If Mo uses the credit card and pays the full balance during the billing cycle, the cost of the purchase will be $135.80.
Explanation:
If Mo pays cash, it implies that she does not get the 3% discount she is entitled to, with the use of her credit card. Therefore, she will bear the full cost. However, if she uses the credit card, the discount is $4.20 ($1540 * 97%) and she will pay only $135.80 as the discounted price of the electronic reader.
Answer: c) Both economies grew at the same rate
Explanation:
The faster growing economy would be the one that saw a greater increase in Real GDP than the other.
Real GDP growth = Nominal GDP growth - Inflation growth.
Hyperpolis Real GDP growth = 15% - 12%
Hyperpolis Real GDP growth = 3%
Superpolis Real GDP growth = 6% - 3%
Superpolis Real GDP growth = 3%
<em>Both countries grew at the same rate of 3%. </em>
