Chpt 2 differential cost, an opportunity cost, or a sunk cost

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differential cost

the difference in cost of two alternatives

opportunity cost

the potential benefit or income that is given up as a result of selecting an alternative over another

Opportunity cost

Benefits from a new DNA analyzer

Differential cost

Cost of electricity to run the X-ray machines

Differential cost

Cost of the new color laser printer

Sunk cost

Cost of the old X-ray machine

None

Rent on the space occupied by Radiology

Differential cost

The cost of maintaining the old machine

None

The salary of the head of the Radiology Department

sunk cost

costs that have already been incurred and cannot be changed by any decision


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