Which of the following techniques is most useful for a special order decision?
A)Payback method
B)Present value method
C)Accounting rate-of-return method
D)Incremental analysis

Question

Quizplus · Accepted Answer

Incremental analysis is a decision-making technique that involves comparing the incremental revenue and cost associated with an opportunity, such as a special order, to determine whether it will be profitable. Therefore, it is the most useful technique for a special order decision. The payback method and accounting rate-of-return method do not consider the time value of money, and the present value method is more appropriate for long-term capital budgeting decisions.

Which of the Following Techniques Is Most Useful for a Special