Financial data are developed for a course of action under an incremental basis and then compared to data developed under a differential basis before a decision is made.

Question

Quizplus · Accepted Answer

Incremental and differential analysis are essentially the same concept in financial decision-making, both involving the comparison of relevant costs and benefits of different alternatives to make a decision. There is no step where data developed under an incremental basis are compared to data developed under a differential basis as they refer to the same analysis process.

Financial Data Are Developed for a Course of Action Under