The key to determining the financial difference between two alternative courses of action is to identify the ________.
A)opportunity cost of one alternative
B)joint cost of both alternatives
C)differential costs and revenues
D)joint cost of one alternative

Question

Quizplus · Accepted Answer

Differential costs and revenues refer to the costs and revenues that vary among different courses of action. By identifying these costs and revenues, we can compare the financial outcomes of each alternative and determine which one is more profitable. Opportunity cost is also important, but it is only one aspect of the overall financial analysis. Joint costs are not useful for comparing alternatives because they apply to both options equally.

The Key to Determining the Financial Difference Between Two Alternative