The difference that exists between total revenues, can be earned from two different alternatives is termed as ________?
Correct answer: A. differential revenue
- A. differential revenue
- B. incremental revenue
- C. independent revenue
- D. dependent revenue
Explanation
Differential revenue is the change in total revenue between two alternative courses of action. It may be positive or negative depending on which alternative is selected.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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