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Incremental Analysis
The method of evaluating the financial impact of business decisions by considering only the costs and benefits that change due to the decision.
Differential Analysis
The process of comparing the costs and benefits of alternative decisions.
Cost Behaviors
The way in which costs change in relation to the level of activity or production volume.
Variable Costs
Costs that change in proportion to the level of activity or volume, such as materials and labor directly associated with the production.
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