Subtracting the costs of one alternative from the costs of the other alternative would be called the ________ cost.
A) sunk
B) imported
C) differential
D) alternative

Question

Quizplus · Accepted Answer

The correct term for subtracting the costs of one alternative from the costs of the other alternative is differential cost. Sunk cost refers to a cost that has already been incurred and cannot be recovered. Imported cost is not a relevant term in this context. Alternative cost is a broader term that refers to the cost of choosing one option over another, but does not necessarily involve subtracting costs from each other as in differential cost analysis.

Subtracting the Costs of One Alternative from the Costs of the Other