Incremental analysis helps decision makers to understand
A)The sunk costs involved in their decision.
B)The impact of their choices.
C)The classification of costs.
D)None of these ans choices are correct.

Question

Quizplus · Accepted Answer

Incremental analysis focuses on evaluating the impact of a particular decision by comparing the expected benefits and costs of alternative options. Therefore, it helps decision makers to understand the potential consequences of their choices and determine the best course of action. It does not deal with sunk costs or the classification of costs since these are irrelevant to the decision-making process.

Incremental Analysis Helps Decision Makers to Understand