The incremental cash flow approach:
A)Analyzes the additional cash inflows and outflows for a specific decision
B)Is not useful for decision-making
C)Is a search for as many cash flows as possible so they can all be used in decision-making.
D)Includes unavoidable cash flows

Question

Quizplus · Accepted Answer

The incremental cash flow approach analyzes the additional cash inflows and outflows for a specific decision, making it very useful for decision-making. It does not aim to find as many cash flows as possible, but rather to analyze only those that are relevant to the decision being made. Unavoidable cash flows may be included or excluded depending on their relevance to the decision at hand.

The Incremental Cash Flow Approach