In determining whether or not to eliminate a segment, differential costs are relevant to the decision.

Question

Quizplus · Accepted Answer

Differential costs, which are the costs that change as a result of eliminating the segment, are relevant to the decision of whether or not to eliminate a segment. These costs can help determine if the segment is profitable or not and if eliminating it will result in a net benefit or net loss for the company.

In Determining Whether or Not to Eliminate a Segment, Differential