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differential cost analysis is decision making technique in which evaluation is confined to only those factors which are different or unique among possible alternatives. It usually involves four steps
(1) compute all costs associated with each alternative,
(2) ignore the sunk costs,
(3) ignore costs that remain largely constant among the alternatives,
(4) select the alternative offering the best cost-to-benefit ratio. Also called incremental analysis or relevant cost analysis.
The differentiation is not among multiple alternatives reflect a variety of things such as the trade-off between the machine is being used and new again not taken a decision possession after .. and costs vary from one alternative to another is the differential costs and this difference occurs in some or all of the variable costs, or some or items each fixed cost items .. Thus, the differential cost does not necessarily represent the variable cost differential has cost be fixed or variable .. that any differential analysis does not focus only on the elements in which the different elements that occur while the difference does not happen is no place for differential ..
So differential analysis is in mobile situations
I agree with answer provided
differential costing is a cost that varies with every alternative. This is useful in decision-making wherein each alternative has different cost and revenues.
Agreed with Syed; I admit I don't knew this answer earlier.
Mr Syed Well Done
