Q374
Difference that exists between total revenues, can be earned from two different alternatives is termed as
A.
independent revenue
B.
incremental revenue
C.
differential revenue
AnswerD.
dependent revenue
Answer: Option C
Solution
Answer: Option C
Solution:
Difference that exists between total revenues, can be earned from two different alternatives is termed as differential revenue. Differential revenue is the difference in sales that will be generated by two different courses of action. The concept is commonly used when evaluating which of two (or more) investments to make in a business.