Incremental analysis would be appropriate for
A) acceptance of an order at a special price.
B) a retain or replace equipment decision.
C) a sell or process further decision.
D) All of these answers are correct.

Question

Quizplus · Accepted Answer

Incremental analysis is a decision-making technique that involves analyzing the additional costs and revenues associated with a specific business decision. It is appropriate for all the given scenarios - acceptance of an order at a special price (to evaluate whether the incremental revenue from the order will exceed the incremental costs), a retain or replace equipment decision (to evaluate whether the incremental cost savings from replacing the old equipment will exceed the incremental cost of the new equipment), and a sell or process further decision (to evaluate whether the incremental revenue from processing further will exceed the incremental costs).

Incremental Analysis Would Be Appropriate for