question archive What is the process of evaluating financial data that changes under alternative courses of action called? incremental analysis decision-making analysis contribution margin analysis cost-benefit analysis

What is the process of evaluating financial data that changes under alternative courses of action called? incremental analysis decision-making analysis contribution margin analysis cost-benefit analysis

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What is the process of evaluating financial data that changes under alternative courses of action called?

  1. incremental analysis
  2. decision-making analysis
  3. contribution margin analysis
  4. cost-benefit analysis

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Answer:

a .

Step-by-Step explanation

Incremental analysis is basically the method which is used in the decision making so that determination of the true cost can be found out between the alternatives. This is also called relevant cost analysis. Relevant cost is basically used in the managerial accounting. This the is avoidable cost that can be avoided during the process of making business decision. This is also known as the differential cost. This is a tool used in managerial decision making and play an important part. It is the cost expected cost of the future which is variable in nature.

Thus, the correct answer is A.