Question

Incremental analysis:

a. Is an important component of identifying decision problems.
b. May be referred to as relevant costing.
c. Is also called differential analysis.
d. Considers all costs and benefits of a decision.3

Answer 1

Incremental analysis, also known as differential analysis or relevant costing, is a decision-making technique used in business to compare the costs and benefits of different options. It focuses on the incremental differences between alternatives and helps businesses make informed choices.

Step-by-step explanation:

Incremental analysis is a decision-making technique used in business to compare the costs and benefits of different options. It involves considering the additional costs and benefits that would result from a particular decision. Incremental analysis, also known as differential analysis or relevant costing, focuses on the differences between alternatives rather than considering all costs and benefits. It is an important component of identifying decision problems as it helps businesses make informed choices based on the incremental impact of their decisions.