One of your colleagues states, This whole subject of differential costing is easy; variable costs are the only costs that are relevant. How would you respond? Do you agree or disagree?

Read Chapter 24 and learn about six examples of Differential Analysis - there are many. Differential analysis is an important decision making tool for managers. Provide an example of a decision based on differential analysis that you have made in your professional or personal life. Discuss Differential Revenue, Differential Expenses and what the result was. You should include the facts and figures used in your analysis. In the end, what decision did you make? (an example can be leasing or purchasing a car, selling an asset or keeping it and renting it to someoneetc.) Be as detailed as possible.