The process of evaluating financial data that change under alternative courses of action is called
A) double entry analysis.
B) contribution margin analysis.
C) incremental analysis.
D) cost-benefit analysis.

Question

Quizplus · Accepted Answer

Incremental analysis is the process of analyzing and evaluating financial data to identify the differences in performance under different scenarios or courses of action. This analysis helps managers make informed decisions about which course of action to take by comparing the incremental revenue and costs associated with each option. Double entry analysis is a method of bookkeeping that records every financial transaction in two different accounts. Contribution margin analysis is a tool used to calculate the difference between the sales price of a product and its variable costs. Cost-benefit analysis is a process of evaluating the costs and benefits of a particular business decision or investment.

The Process of Evaluating Financial Data That Change Under Alternative