_____________ costs between two alternative projects are those that would result from selecting one alternative instead of the other.
A) Allocated
B) Differential
C) Sunk
D)Irrelevant

Question

Quizplus · Accepted Answer

Differential costs are relevant in decision making because they represent the difference in costs between two alternatives. Allocated costs (A) have already been incurred and cannot be changed, sunk costs (C) are also irrelevant because they are costs that have already been incurred and cannot be recovered, and irrelevant costs (D) do not have any effect on the decision making between two alternatives.

_____________ Costs Between Two Alternative Projects Are Those That Would