When deciding whether or not to accept a special order, a decision-maker should focus on differential costs instead of full costs. True or False True False

Question

Johnston

Social Studies

4 June, 08:06

When deciding whether or not to accept a special order, a decision-maker should focus on differential costs instead of full costs. True or False True False

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Answers (1)

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Jerome Simmons · Answer 1

True

Explanation:

You made two different orders for a particular item and there is a difference between them, a decision maker will want to see the difference between the two orders and in most cases choose the order with the cheaper price by looking at the differential cost than the full cost, I. e trying to see the difference between the two orders or cost and to decide which one is cheaper. So it is true a decision maker will look at the difference between the two cost not the full cost of the orders.