Differential cost - Characteristics

Q.  Pertaining to the differential cost systems, which of the following statements are true?

A) Differential cost plus differential income shows net loss or net income
B) Differential cost is ascertained by comparing total costs of each alternative.
C) Differential cost related to differential investments is calculated every time.
- Published on 04 Sep 15

a. Only A
b. Only B
c. Only C
d. A, B, C

ANSWER: Only B

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