Which of the following statements about incremental analysis is true?
A)It cannot be used if more than two alternatives are available.
B)It considers only cost factors, not revenue.
C)Its focus is on the past activities.
D)It only considers factors that are different for each alternative, and only those factors that will occur in the future.

Question

Quizplus · Accepted Answer

Incremental analysis only considers the factors that are different for each alternative and those that will occur in the future. It does not focus on past activities. Additionally, it can be used with more than two alternatives and considers both cost and revenue factors.

Which of the Following Statements About Incremental Analysis Is True