Cost Accountancy Question:

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Explain Differential Cost

Cost Accountancy Interview Question
Cost Accountancy Interview Question

Answer:

Differential Cost is the difference between the costs of two alternatives. It includes both cost increase and cost decrease. It can be either variable or fixed. Example: Cost of first alternative = 10000; Cost of second alternative = 5000; Differential Cost = 10000 – 5000 = 5000

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