The amount of increase or decrease in revenue that is expected from a particular course of action as compared with an alternative is
A) manufacturing margin
B) contribution margin
C) differential cost
D) differential revenue

Question

Quizplus · Accepted Answer

The amount of increase or decrease in revenue that is expected from a particular course of action as compared with an alternative is called differential revenue. This concept is important in decision-making as it helps in comparing the expected revenue gains or losses from different alternatives. Choices A, B and C are incorrect as they do not refer to the expected revenue gains or losses from different alternatives.

The Amount of Increase or Decrease in Revenue That Is