Costs in Decision Making - Accounting

The video tutorial discusses decision making in business, focusing on three types of costs: differential, opportunity, and sunk costs. Differential cost is the difference between two alternatives, opportunity cost is the potential benefit lost when choosing one option over another, and sunk cost is an incurred cost that should not influence future decisions. Understanding these costs helps managers make informed decisions.

What new insight or understanding did you gain from this video?

Evaluate responses using AI:

OFF