What is the process of evaluating financial data that changes under alternative courses of action called?
A)Incremental analysis
B)Decision-making analysis
C)Contribution margin analysis
D)Cost-benefit analysis

Question

Quizplus · Accepted Answer

Incremental analysis involves comparing the costs and revenues associated with different options or courses of action, and is commonly used in decision-making. Option B, decision-making analysis, is too broad and could refer to any type of analysis done in the process of making a decision. Option C, contribution margin analysis, only looks at the profitability of individual products or services, and is not as comprehensive as incremental analysis. Option D, cost-benefit analysis, typically involves evaluating the potential costs and benefits of a project or investment, and is not as applicable to evaluating financial data under alternative courses of action. Therefore, A is the best choice.

What Is the Process of Evaluating Financial Data That Changes