Differential Cost Definition: Any cost that differs between alternatives in a decision-making situation. In managerial accounting, this term is synonymous with avoidable cost and relevant cost. Also see Incremental cost. Example: Cost of first alternative = 5000; Cost of second alternative = 4000; Differential
Differential Cost is a cost that is different for each available alternative.
Differential Cost is The difference between the costs of two or more alternatives.
Differential Cost is an alternative term for marginal cost.