Differential analysis focuses on:
A) setting the selling price according to the demand for the product.
B) reducing the influence of constraints on production processes.
C) setting the selling price according to the price offered by competitors.
D) the effect of alternative courses of action on revenues and costs.

Question

Quizplus · Accepted Answer

Differential analysis involves analyzing two or more alternative courses of action and comparing their impact on revenues and costs. It helps in identifying the most profitable option among available alternatives. Options A, B, and C are not the primary focus of differential analysis.

Differential Analysis Focuses On