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

Question

Quizplus · Accepted Answer

Differential cost is the amount of increase or decrease in cost that is expected from a particular course of action as compared to an alternative. Period cost and product cost are not directly related to comparing different courses of action, and discretionary cost refers to optional expenses that are not necessarily relevant to decision making.

The Amount of Increase or Decrease in Cost That Is