Question

ll of the following are steps in incremental analysis except: determine the incremental revenue choose the...

ll of the following are steps in incremental analysis except:

determine the incremental revenue
choose the alternative that produces the highest revenue
     
identify the alternative actions
determine the relevant costs of each alternative

Homework Answers

Answer #1

Except - choose the alternative that produces the highest revenue

Because we choose the alternative which produces highest net income and not Revenue.

Following Steps will be involved:

  1. identify the alternative actions?
  2. determine the incremental revenue
  3. determine the relevant costs of each alternative
  4. choose the alternative which produces highest net income


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