Which of the Following Statements Regarding Differential Costs Is (Are)true

Multiple Choice

Which of the following statements regarding differential costs is (are) true? (A) The full cost fallacy occurs when a decision-maker includes fixed manufacturing overhead in the product's cost.
(B) When deciding whether or not to accept a special order,a decision-maker should focus on differential costs instead of full costs.

A) Only A.
B) Only B.
C) Neither A nor B is false.
D) Both A and B are true.