Managerial Accounting (15th Edition)

Published by McGraw-Hill Education
ISBN 10: 007802563X
ISBN 13: 978-0-07802-563-1

Chapter 2 - Managerial Accounting and Cost Concepts - Questions - Page 51: 2-16

Answer

Differential cost = the difference between two types of alternatives. Opportunity cost = the benefit of one alternative over the other alternative. Sunk cost= the cost that cannot be changed no matter the decision which is taken.

Work Step by Step

Differential cost = the difference between two types of alternatives. Opportunity cost = the benefit of one alternative over the other alternative. Sunk cost= the cost that cannot be changed no matter the decision which is taken.
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