Differential cost is . Multiple select question. also known as incremental cost the same as opportunity cost the difference in cost between two alternatives never relevant to a product decision

I. also known as incremental cost

II. the difference in cost between two alternatives

Explanation:

Costing is the measurement of the cost of production of goods and services by assessing the fixed costs and variable costs associated with each step of production.

Differential cost is also known as incremental cost and it is the difference in cost between two alternatives.

In Financial accounting, fixed cost can be defined as predetermined expenses in a business that remain constant for a specific period of time regardless of the quantity of production or level of outputs. Some examples of fixed costs in business are loan payments, employee salary, depreciation, rent, insurance, lease, utilities etc.

On the other hand, variable costs can be defined as expenses that are not constant and as such usually change directly and are proportional to various changes in business activities. Some examples of variable costs are taxes, direct labor, sales commissions, raw materials, operational expenses etc.

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