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Which one of the following is not true about differential cost analysis?

A)   Differential Costs are the difference in the cost of alternative choices

B)   Differential Costs are out of pocket costs

C)   Differential Costs are sunk costs

D)   Opportunity and imputed costs are relevant in differential cost analysis

E)    None

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Question added by Ahmed Abdi Mahad , Director of Internal Auditing Directorate , Jigjiga University
Date Posted: 2015/05/14
Ayman Said
by Ayman Said , Senior accountant , Borg Pharmaceutical industries

Choice (A) as it is the definition  of relevant cost

Ahmed Abdi Mahad
by Ahmed Abdi Mahad , Director of Internal Auditing Directorate , Jigjiga University

choice A is answer for your question. Thanks

RAJESH DESHKULKARNI GOPAL
by RAJESH DESHKULKARNI GOPAL , Group Accounts & Tax Manager , Confidential Group

Which one of the following is not true about differential cost analysis?

A)   Differential Costs are the difference in the cost of alternative choices

B)   Differential Costs are out of pocket costs

C)   Differential Costs are sunk costs

D)   Opportunity and imputed costs are relevant in differential cost analysis

E)    None

 

ANSWER A

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