Differential costs; it is the cost analysis strategy between two options to decide that alternative is the better. Example – If there are two plans for products, one can only adopt the business, and then the option of the product that offers maximum sales can be framed in terms of differential costs. Cost of opportunity, the next best option is the cost. The expense of losing something better to earn. Sunk costs are the cost or historical costs of the past. Examples of equipment, factory investment etc.
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