Asked by
Briana Osipow
on Dec 05, 2024Verified
The primary advantage of differential analysis is that it:
A) clearly shows the difference between the costs and benefits of the alternatives.
B) is much easier to formulate than total cost.
C) reduces the cost of one alternative by the cost of another.
D) only considers relevant costs.
Differential Analysis
A decision-making technique that focuses on the cost and revenue differences between alternative business decisions.
Relevant Costs
Costs that are directly associated with a specific decision and will change based on the outcome of that decision.
Alternatives
Different options or strategies that can be considered or chosen in decision-making processes.
- Comprehend the principles of differential analysis and its advantages in decision-making.
Verified Answer
HB
Learning Objectives
- Comprehend the principles of differential analysis and its advantages in decision-making.