Explore BrainMass

Explore BrainMass

    How does cost-benefit related to incremental analysis?

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    The concept of "Cost-Benefit" permeates smart decision making and accounting principles. How does this concept relate to incremental analysis. Provide an example to prove your point.

    © BrainMass Inc. brainmass.com November 24, 2022, 6:14 pm ad1c9bdddf

    Solution Preview

    Incremental analysis is the comparison of the incremental benefit with the incremental costs. If the incremental benefits exceed the incremental costs, the decision is usually to "go for it" (barring any qualitative factors that may override the economics such as safety or secrets). If the incremental costs ...

    Solution Summary

    This discussion is two paragraphs (216 words) and explains how incremental analysis and cost-benefit are similar and gives an example of a make-or-buy decisions. Qualitative factors are mentioned.