Differential analysis is a tool for evaluating alternative courses of action always resulting in higher profits for the organization.

Question

Quizplus · Accepted Answer

Differential analysis is a tool used to compare different alternatives and their respective costs and benefits. The goal is to identify the alternative that is the most profitable, but it does not always result in higher profits for the organization. Other factors, such as ethical considerations or long-term strategic goals, may also be taken into account when making a decision.

Differential Analysis Is a Tool for Evaluating Alternative Courses of Action