Subtracting the costs of one alternative from the costs of the other alternative would be called the ____________ cost.
A)sunk
B)imported
C)differential
D)alternative

Question

Quizplus · Accepted Answer

The differential cost is the cost difference between two alternatives, which helps to determine which one is the best choice. By subtracting the costs of one alternative from the costs of the other alternative, we can identify the incremental cost or benefit of choosing one alternative over another. Therefore, C) differential is the best choice for this scenario.

Subtracting the Costs of One Alternative from the Costs of the Other