Define the following terms: incremental cost, opportunity cost, and sunk cost. 13-5 "Variable costs and differential costs mean the same thing." Do you agree? Explain. 13-6 "All future costs are relevant in decision making." Do you agree? Why? 13-11 Give at least four examples of possible constraints. 13-13 Define the following terms: joint products, joint costs, and split-off point. 13-15 What guideline should be used in determining whether a joint product should be sold at the split-off point or processed further?

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Incremental cost Incremental cost refers to the change in total cost that occurs when an additional unit of output is produced or when a particular decision is made It represents the additional cost i... View the full answer