question archive Which of the following describes one aspect of incremental analysis? Both costs and revenues that stay the same between alternate courses of action will be analyzed

Which of the following describes one aspect of incremental analysis? Both costs and revenues that stay the same between alternate courses of action will be analyzed

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Which of the following describes one aspect of incremental analysis?

  1. Both costs and revenues that stay the same between alternate courses of action will be analyzed.
  2. Both costs and revenues that differ between alternate courses of action will be analyzed.
  3. All costs and revenues, regardless if they stay the same or differ between alternate courses of action, will be analyzed.
  4. Only costs relating to the decisions at hand are analyzed.

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Answer:

b )

Step-by-Step explanation

Incremental analysis, also called as marginal analysis, or differential analysis, is used to analyze any existing cost differences between different alternatives.

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