23. Differential costs are: A. A cost that continues to be incurred in the absence of activity. B. The profit foregone by selecting one choice instead of another. The difference in total costs that result from selecting one choice instead of C. another. D. None of the above. 24. Differential analysis involves comparing alternative actions with the status quo to make decisions. A. True. B. False. 25. The period of time over which capacity will be unchanged is: C. Short run. D. Product life cycle. A. Long run. B. Sunk cost. 26. If there is excess capacity, the minimum acceptable price for a special order must cover. A. Only variable costs associated with the special order B. Variable and incremental fixed costs associated with the special order. C. Variable and fixed manufacturing costs associated with the special order. D. Variable costs and incremental fixed costs associated with the special order, plus the contribution margin usually earned on regular units. 27. Costs that were incurred in the past and cannot be changed regardless of the decision made are call sunk costs. A. True B. False