Question: Differential analysis is used a . to determine the effect of alternative courses of action on revenues and costs. b . to measure managerial efficiency

Differential analysis is used
a. to determine theeffect of alternative courses of action on revenues and costs.
b. tomeasure managerial efficiency in the use of investments in assets, computed as income from operations divided by invested assets.
c. as a measure of the relative mix of a business's variable costs and fixed costs, computed as contribution margin divided by operating income.
d. for comparing one company with another or for comparing a company with industry averages.

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