ECONOMICS

Detailed explanation-1: -Incremental analysis helps to determine the cost implications of two alternatives. It is also known as the relevant cost approach, marginal analysis, or differential analysis.

Detailed explanation-2: -Incremental analysis (also referred to as the relevant cost approach, marginal analysis, or differential analysis) is a decision-making tool used to assess financial information and derive a decision between two or more alternatives.

Detailed explanation-3: -Differential analysis is a decision-making technique that examines the benefits and costs associated with each of two options and compares the net results of the two. The alternative selected is the one with the most favorable (or least unfavorable) financial impact.

Detailed explanation-4: -Incremental cost is also known as marginal cost.

Detailed explanation-5: -Marginal Analysis examines the costs and benefits of specific business decisions. Incremental Analysis examines the most effective decision in term of maximizing potential benefits.