Asked by Angelica Golebiewski on May 28, 2024
Verified
In incremental analysis
A) only costs are analyzed.
B) only revenues are analyzed.
C) both costs and revenues may be analyzed.
D) both costs and revenues that stay the same between alternate courses of action will be analyzed.
Incremental Analysis
The process of identifying the financial data that change under alternative courses of action, often used in decision-making situations where costs and benefits need to be evaluated.
Costs and Revenues
The expenses incurred and the income earned by a business during a specific period, influencing profitability.
- Get to know the causes influencing cost movements and their significance in granular analysis.
- Discern the approach of progressive analysis and its impact on managerial judgments.
Verified Answer
SJ
Sumit JalanMay 30, 2024
Final Answer :
C
Explanation :
Incremental analysis involves the comparison of the costs and revenues between two or more alternative courses of action. Therefore, both costs and revenues may be analyzed in incremental analysis to determine the most profitable course of action.
Learning Objectives
- Get to know the causes influencing cost movements and their significance in granular analysis.
- Discern the approach of progressive analysis and its impact on managerial judgments.