Incremental costs are additional costs that result when production, or some other factor is increased. These cost are relevant to the decision making process.
Historical costs are sunk costs that are not relevant to the decision making process. In the decision making process you want to look only at costs that differ among the related options.
Differential costs are costs that differ between two alternatives. These costs are relevant to the decision making process.
Avoidable costs are relevant to decision making process because they are costs that can be avoided depending upon the decision that is made. In the decision making process we need to look at all avoidable (variable and fixed) costs that will vary among the related options.
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