Differential analysis is a common method used when making which decisions? a. long-term capital project decisions
b. short-term business decisions
c. sunk cost decisions
d. long-term business decisions

b. short-term business decisions.

Explanation:

Differential analysis can be defined as a management accounting approach which typically involves measuring and analyzing the changes in costs, revenues and benefits that would be gotten from an alternative business decision or course of action.

Differential analysis is a common method used when making short-term business decisions in order to determine which is the most cost-effective. Some of the short-term business decisions are accepting or declining orders, setting selling or cost price for products, keeping or dropping customers, product lines, etc.

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