Differential cost is a synonym for
A) detrimental cost.
B) opportunity cost.
C) accidental cost.
D) incremental cost.

Question

Quizplus · Accepted Answer

Differential cost refers to the change in cost that occurs as a result of a specific decision, activity, or project. It is also known as incremental cost because it only considers the additional costs incurred as a result of the decision, rather than the total cost. Option A (detrimental cost) and option C (accidental cost) are not synonyms for differential cost, while option B (opportunity cost) refers to the cost of foregoing the next best alternative, and is not exactly the same as differential cost.

Differential Cost Is a Synonym for