When deciding whether or not to accept a special order, a decision-maker should focus on differential costs instead of full costs.

Name: When deciding whether or not to accept a special order, a decision-maker should focus on differential costs instead of full costs.
Brand: Quizplus
Rating: 4.8 (40 reviews)

Question

Quizplus · Accepted Answer

Differential costs are the additional costs directly associated with the special order, which are relevant for decision-making, whereas full costs include all costs, some of which may not change with the order.

When Deciding Whether or Not to Accept a Special Order