Differential analysis can aid management in making decisions on a variety of alternatives, including whether to discontinue an unprofitable segment and whether to replace fixed assets.

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Differential analysis involves comparing the costs and benefits of different alternatives to aid in making decisions. This can include analyzing the profitability of a particular segment and determining whether it would be more beneficial to discontinue it or continue with it. Additionally, differential analysis can also help in deciding whether to replace fixed assets, as it can compare the costs of continuing to use the existing assets versus the costs of purchasing new ones.

Differential Analysis Can Aid Management in Making Decisions on a Variety