The concept of marginal or incremental analysis helps decision makers to ________.
A)determine global competition
B)analyze trade agreements
C)protect government expenditures
D)establish accounting procedures
E)optimize returns or minimize costs

Question

Quizplus · Accepted Answer

Marginal or incremental analysis focuses on the changes in cost or revenue that result from a specific decision. This helps decision makers to identify the most profitable decision by optimizing returns or minimizing costs. Therefore, choice E is the best answer.

The Concept of Marginal or Incremental Analysis Helps Decision Makers