In general only the differences between alternatives are relevant to decisions

Question

Quizplus · Accepted Answer

Cost classifications used in making decisions include differential costs, opportunity costs, and sunk costs. These costs are focused on the differences between alternatives and their potential impact on decision making, rather than simply categorizing costs into general categories. Therefore, the statement that only the differences between alternatives are relevant to decisions is true.

In General Only the Differences Between Alternatives Are Relevant to Decisions