In estimating order costs and carrying costs,only __________ costs matter.
A)controllable
B)differential
C)fixed
D)variable

Question

Quizplus · Accepted Answer

Differential costs are the only costs that matter when estimating order costs and carrying costs. These costs are the difference in costs between options or alternatives. By analyzing these costs, a company can make informed decisions about ordering and carrying inventory. Controllable, fixed, and variable costs are not as relevant to this specific estimation process.

In Estimating Order Costs and Carrying Costs,only __________ Costs Matter