The Purpose of Incremental Analysis Is to Find the Alternative

question 28

Multiple Choice

The purpose of incremental analysis is to find the alternative

• A) with the fewest relevant costs.
• B) that brings in the most revenue.
• C) that contributes the most to profits.
• D) with the lowest fixed costs.

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Definitions:

Diluted Earnings

Net income available to common shareholders, adjusted for the effects of all potential dilutive securities.

Ranking

Ordering or grading things or individuals in terms of quality, importance, or performance.

Impact

The effect or influence of one factor on another, often used to describe the outcomes or changes resulting from a particular action or policy.

Financial Accounting

Financial accounting is the branch of accounting that focuses on the preparation of financial statements for external users, such as investors and creditors.