he cost of building an automated assembly line in a factory is P700,000; a manually operated assembly line would cost P250,000. What economic term is used to describe the P450,000 variation between these two amounts? Differential cost Sunk cost Marginal cost Out of pocket cost

he cost of building an automated assembly line in a factory is P700,000; a manually operated assembly line would cost P250,000. What economic term is used to describe the P450,000 variation between these two amounts? Differential cost Sunk cost Marginal cost Out of pocket cost

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The cost of building an automated assembly line in a factory is P700,000; a manually operated assembly line would cost P250,000. What economic term is used to describe the P450,000 variation between these two amounts?

Differential cost

Sunk cost

Marginal cost

Out of pocket cost

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