Relevant (I.e., Differential) Cost Analysis

Multiple Choice

Relevant (i.e., differential) cost analysis:

A) Takes all variable and fixed costs into account to analyze decision alternatives.
B) Considers only variable costs as these are the costs that change with each decision alternative.
C) Considers only nonfinancial and strategic factors associated with each decision alternative.
D) Considers all variable and fixed future costs that change with each decision alternative.
E) Allows the decision maker to group all types of costs together to facilitate decision making.