Differential revenues and costs. Example. Cost Accounting Course. CPA Exam BAR

Описание: IN this video, I discuss differential revenues and costs. Differential revenues and costs. (also called relevant revenues and costs or incremental revenues and costs) represent the difference in revenues and costs among alternative courses of action. Analyzing this difference is called differential analysis

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The differential cost can be a fixed cost or variable cost. Similarly the difference in revenue of two alternatives is known as differential revenue. For example, if alternative A's revenue is $15,000 and alternative B's revenue is $10,000. The difference of $5,000 would be differential revenue.