Costs that change across decision alternatives are:
A)accounting costs.
B)activity-based costs.
C)differential costs.
D)capital costs.

Question

Quizplus · Accepted Answer

Differential costs are costs that vary between different decision alternatives. They are important because they help in determining the financial impact of choosing one alternative over another. Accounting costs refer to the costs that are recorded in the books of accounts and may or may not reflect actual cash outflows. Activity-based costs are costs that are allocated to different activities based on their usage of resources. Capital costs refer to the costs associated with financing a project or investment.

Costs That Change Across Decision Alternatives Are