Which of the following statements regarding differential costs is (are) false? (

Question

          Which of the following statements regarding differential costs is (are) false?
(A). The full cost fallacy occurs when a decision-maker fails to include fixed manufacturingoverhead in the product's cost.
(B). When deciding whether or not to accept a special order, a decision-maker should focus on differential costs instead of full costs

  only A.
                                        only B.
                                        neither A nor B is false.
                                        both A and B are true.

Explanation / Answer

only A.

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