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Which of the following is the alternative term given to incremental analysis? a. Common size analysis...

Which of the following is the alternative term given to incremental analysis?

a. Common size analysis

b. Differential analysis

c. DuPont analysis

d. Trend analysis

Business   Accounting   
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Answer #1

Answer: B = Differential Analysis.

>> Common size analysis used to know key changes and trends in financial position and operational results of an organization i.e Vertical Analysis.

>> Differential analysis used to know the difference in cost or incomes from alternate methods.

>> Dupont analysis is used to know to analyze the ability to increase return on equity.

>> Trend analysis is used to know future trends or movements etc from past data.

>> Incremental analysis is used to know the difference from revenue and cost and gives benefit or loss from alternative methods which is similar to differential analysis.

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