Difference of cost, which occurs while considering alternatives can be classified as
Difference of cost, which occurs while considering alternatives can be classified as Correct Answer differential cost
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.