ECONOMICS

Detailed explanation-1: -both costs and revenues that stay the same between alternate courses of action will be analyzed.

Detailed explanation-2: -The method incorporates accounting and financial information in the decision-making process and allows for the projection of outcomes for various alternatives and outcomes. Through incremental analysis, the revenues, costs, and possible outcomes of the alternatives can be identified.

Detailed explanation-3: -Incremental analysis, sometimes called marginal or differential analysis, is used to analyze the financial information needed for decision making. It identifies the relevant revenues and/or costs of each alternative and the expected impact of the alternative on future income.

Detailed explanation-4: -What Is Incremental Analysis? Incremental analysis is a decision-making technique used in business to determine the true cost difference between alternatives. Also called the relevant cost approach, marginal analysis, or differential analysis, incremental analysis disregards any sunk cost or past cost.

Detailed explanation-5: -All incremental revenue or incremental costs are relevant. Sunk costs have already been incurred and cannot be changed by future actions. Sunk costs have already been incurred and cannot be changed by future actions. The incremental cost of producing the order.