TEST BANK FOR Management for Cost Accounting 5th E
Maastricht University (UM)
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Exam (elaborations) TEST BANK FOR Management for Cost Accounting 5th E
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Exam (elaborations) TEST BANK FOR Management for Cost Accounting 5th E 
1–13. (20 min.) Cost data for managerial purposes. 
a. Differential costs are costs that would change; that is, the materials costs in this 
situation. Other costs would presumably not be affected by the change in materials. 
Other issues include the quality and availability of the new materials. 
Differential costs next year are $.90 (= $6.00 – $5.10) calculated as follows: 
Cost 
Old Materials New Materials 
Next year...
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