Describe how incremental analysis, a costing technique used in managerial accounting, can be used to evaluate elements of Human Resource Management and Marketing, such as outsourcing recruitment in HR and undertaking research in Marketing.

 

Answer:

In terms of recruitment in human resource, efficiency is the most important factor in order to reflect its effectiveness, so it is important to have a minimum time spent in finding the best employee. You can use this technique to control your time, plan possible vacancies by comparing it to your previous activities, and budgeting your expenses while choosing the best employee that will help you to have a higher efficiency.

In terms of undertaking research in marketing, it helps to allocate limited resources to product lines that will provide a greater benefits than its cost. It is commonly used in production because they are able to know what's the best procedure to do in order to minimized cost (like: whether to make or buy product, sell now or process further, keep or replace).

Incremental analysis focuses on differences between the two alternative actions, so it is useful in determining the best way to find the best alternatives you should apply to minimized your cost.