The amount of increase or decrease in cost that is expected from a particular course of action as compared with an alternative is
A) period cost
B) product cost
C) differential cost
D) discretionary cost

Question

Quizplus · Accepted Answer

Differential cost refers to the change in cost between two alternatives. It helps in making decisions by comparing the costs and benefits of different options. Period cost and product cost are types of costs and not related to comparing alternatives, while discretionary cost refers to the expenses that management has the discretion to incur or not.

The Amount of Increase or Decrease in Cost That Is