Difference of cost, which occurs while considering alternatives can be classified as

A dependent cost
B independent cost
C incremental cost
D differential cost

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.
Bissoy MCQ
#Management #Management Accounting

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