In order to carry out the functions of planning management company will be faced with decisions making various alternative options, and of course the company's management would like to take the best decision. Some types of decision making consist of stop or continue production, reject or accept special order, replace old assets with new assets, and buy or make your own. In order to get the best decisions companies need accounting information differential. Differential accounting information is (Munawir.S, 2002), information costs that will occur in the future are expected to be different for each alternative and useful for management's decision to choose one of the best alternative actions. Differential accounting information are difference of assets, revenues, and costs in certain alternative actions are only concerned with differential charges while concerned with the revenue that income differentials. This accounting information is used to provide a clear picture of the amount of costs and revenues that would occur if the decision to buy or make your own place. Differential information consists of assets, income and expenses. Differential accounting information corresponding to the cost is the cost differential . Differential accounting information corresponding to the income referred to income differential and is concerned with the assets referred to assets differential. The following will explain the differential cost differential revenue and earnings differential:
1. 1.
Cost Differential
Differential costs are costs that will come are different
in every decision alternative will be selected. Differential cost
characteristics:
a.
Future costs
b.
Different costs between alternative
decision.
2. 2. Differential Revenue
a.
Future costs
b.
Different revenue between alternative
decision.
