Answer:
The correct answer is the first option: Neither the differential nor total cost approach.
Step-by-step explanation:
On the one hand, the "Differential Cost" approach refers to method used by the managers when they have two alternatives and have to choose between one of them. This approach considers the difference between those alternatives and show the manager which one is the best option to take. It is only used for decision making process so there are no irrelevant items included in this analysis.
On the other hand, the "Total Cost" approach is another method used by a company with the purpose of calculating certain costs that a company faces and it only considers all the relevant activities instead of seeing things individually.