Author:

(A) It is a sunk cost
(B) It is an opportunity cost
(C) It do not affect the decision making process
(D) All costs are relevant

(A) They affect the future cost
(B) They cause an increment in cost
(C) Relevant cost is a sunk cost
(D) They affect the future cash flows

(A) Larger sales volume
(B) Higher selling price
(C) Reduced material cost
(D) Charging of lower depreciation

(A) Managers have control over marketing
(B) Managers have a sales team
(C) Managers have a sales team and are given a credit control function
(D) Managers can purchase capital assets and are given a credit control function

(A) Contribution approach
(B) Absorption costing approach
(C) Decision making approach
(D) Marginal costing approach

(A) It is a broader concept than variable cost as it takes into account additional fixed costs caused by management decisions
(B) With the passage of time and change in situation, differential costs will vary
(C) The difference in cost between buying them from outside or make them in the company is differential cost, irrelevant for decisions
(D) They are extra or incremental costs caused by a particular decision