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In the decision making process, differential cost is a (n)
Suggested Answer: B
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The net initial investment for a capital project consists of three components: the purchase of new equipment, the increase in working capital, and the after-tax proceeds from the disposal of old equipment For this company, the first of these is $54,000 ($50,000 + $4,000), and the second is $1,000. The calculation of the after-tax proceeds from the disposal of the old equipment is as follows:
33 comments · newest first
IS
Isidra
11 months ago
Nope, definitely not sunk costs! It's about what changes.
KA
Kathrine
11 months ago
Really? I thought differential costs were just sunk costs.
SA
Sabina
12 months ago
Wait, isn't it more about opportunity costs?
TA
Tasia
12 months ago
Totally agree, it's all about the costs that vary!
JE
Jerilyn
12 months ago
Differential cost refers to costs that change among alternative courses of action.
TA
Tandra
1 year ago
I'm pretty confident that differential cost is not a sunk or fixed cost, so that rules out A and B. I think D makes the most sense here.
ER
Erick
1 year ago
I keep mixing up differential cost with opportunity cost. I feel like they overlap, but I can't recall which one is which in this context.
KA
Kate
1 year ago
I remember practicing a question similar to this, and I think the answer was about costs that vary with different choices. So, I might lean towards option D.
CA
Carolynn
1 year ago
I think differential cost refers to costs that change between different options, but I'm not entirely sure if that's the right definition.
VI
Viola
1 year ago
Okay, let's see. HTTP, RESTful, and Web Service are all common protocols used in cloud computing, so those are probably not the answer. PPPoE is more for traditional internet connections, so that's my best guess.
SH
Sherrell
1 year ago
Okay, I've got an idea. The "ref_contributions" attribute must be related to field decorations somehow. I'll try to reason through the true/false options.
HO
Holley
1 year ago
I remember studying something about code versions in our last session, but I feel like it wasn't the main factor for the primary key server selection.
TH
Theola
1 year ago
Differential cost, huh? Sounds like something you'd find in a physics lab, not a decision-making process. Well, I'm going with D. Might as well roll the dice on this one!
ET
Ettie
1 year ago
I agree, D) Cost that changes among alternative courses of action.
RO
Rosendo
1 year ago
I'll go with D) Cost that changes among alternative courses of action.
LO
Lorrine
1 year ago
I'm going with A) Sunk cost of alternative courses of action.
NI
Nicholle
1 year ago
I think it's C) Opportunity cost of alternative courses of action.
DA
Davida
1 year ago
I'm not sure, but B) Fixed cost of alternative courses of action sounds right to me.
VI
Viola
1 year ago
I agree with D) Cost that changes among alternative courses of action.
TA
Tammi
1 year ago
I'm going with A) Sunk cost of alternative courses of action.
HY
Hyun
1 year ago
I think it's C) Opportunity cost of alternative courses of action.
GL
Gladys
1 year ago
Ooh, this is a good one. I was tempted by the opportunity cost angle, but I think the correct answer is D. The cost that changes among the alternatives.
MA
Marshall
1 year ago
Yeah, I was also considering opportunity cost, but D makes more sense.
MO
Monroe
1 year ago
I agree, it's definitely the cost that changes among the alternatives.
MI
Micheal
1 year ago
Easy peasy! Differential cost is the cost that changes depending on the decision made. Gotta go with D on this one.
RE
Ressie
2 years ago
Hmm, I think this is a tricky one. Differential cost is the cost that varies between alternative courses of action, so I'm going with option D.
JE
Jeannine
1 year ago
I'm not sure about this one, but I think option A might also be a possibility.
EL
Eleonore
1 year ago
I see where you're coming from, but I still think option D is the best choice.
FA
Fairy
1 year ago
I think it's actually option C, which is the opportunity cost of alternative courses of action.
GL
Glory
1 year ago
I agree with you, option D is correct. It's the cost that changes among alternative courses of action.
JE
Jenelle
2 years ago
I'm not sure, but I think it might be D) Cost that changes among alternative courses of action.
SH
Shizue
2 years ago
I agree with Dottie, because differential cost is about the cost that changes among alternative courses of action.
DO
Dottie
2 years ago
I think the answer is C) Opportunity cost of alternative courses of action.