Differential Cost

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.

Differential Cost Definition

Abida Rehman Accounting Definitions, Managerial Accounting

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