Incremental analysis helps decision makers to understand
A)the sunk costs involved in their decision.
B)the impact of their choices.
C)the classification of costs.
D)the materiality of a situation.

Question

Quizplus · Accepted Answer

Incremental analysis helps decision makers to understand the impact of their choices. It focuses on analyzing the additional costs and benefits that will be incurred by choosing one alternative over another. By comparing the incremental costs and benefits of each alternative, decision makers can choose the alternative that will have the greatest positive impact on their objectives.

Incremental Analysis Helps Decision Makers to Understand