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
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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