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.

Question

Quizplus · Accepted Answer

Incremental analysis is useful for all the given scenarios as it involves analyzing the incremental cost and revenue associated with a specific decision or alternative. In the case of accepting an order at a special price, incremental analysis would involve comparing the incremental revenue from this order with the incremental cost of fulfilling the order. Similarly, in a retain or replace equipment decision, incremental analysis would compare the incremental cost and revenue associated with each option. In a sell or process further decision, incremental analysis would involve comparing the incremental revenue from selling the product as is vs. processing it further, and the incremental cost of processing it further. Hence, incremental analysis can be applied to all of these scenarios.

Incremental Analysis Would Be Appropriate for