For which of the following decisions is incremental analysis not appropriate?
A)elimination of an unprofitable segment
B)determining cost behaviour
C)a make-or-buy decision
D)an allocation of limited resource decision

Question

Quizplus · Accepted Answer

Incremental analysis is not appropriate for determining cost behavior as it requires an understanding of the underlying cost structure and the relationships between cost and output levels. It is a broader analysis that requires a more comprehensive approach than just looking at incremental costs and revenues. The other options listed can all benefit from incremental analysis to help determine the best course of action.

For Which of the Following Decisions Is Incremental Analysis Not