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A) Differential Costs are the difference in the cost of alternative choices
B) Differential Costs are out of pocket costs
C) Differential Costs are sunk costs
D) Opportunity and imputed costs are relevant in differential cost analysis
E) None
Choice (A) as it is the definition of relevant cost
A) Differential Costs are the difference in the cost of alternative choices
B) Differential Costs are out of pocket costs
C) Differential Costs are sunk costs
D) Opportunity and imputed costs are relevant in differential cost analysis
E) None
ANSWER A
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