The purpose of incremental analysis is to find the alternative
A)with a few relevant costs.
B)that brings in the highest revenue.
C)that contributes the most to profits.
D)with the lowest fixed costs.

Question

Quizplus · Accepted Answer

Incremental analysis focuses on the additional or incremental costs and benefits of one alternative over another, aiming to identify the option that contributes the most to profits by considering only the relevant costs and benefits that change between alternatives.

The Purpose of Incremental Analysis Is to Find the Alternative