Lakitha has been asked to evaluate the desirability of outsourcing some functions her company currently performs internally.In order to carry out her analysis,she plans to compare the costs and revenues resulting from outsourcing to the firm's current costs and revenues.Lakitha's approach is an example of incremental analysis.

Question

Quizplus · Accepted Answer

Incremental analysis involves examining the costs and revenues associated with a decision, specifically whether the benefits of an incremental change exceed the costs. Lakitha's plan to compare the costs and revenues resulting from outsourcing to the firm's current costs and revenues is an example of incremental analysis.

Lakitha Has Been Asked to Evaluate the Desirability of Outsourcing