Differential Analysis
A differential analysis, also known as an incremental analysis, is a decision-making approached used to analyze the financial effects of choosing one choice over another. It is commonly used by business managers and owners to determine which of two scenarios will yield the best financial outcome. Common differential analyses that are performed in a managerial or cost class are:
- Make vs. Buy
- Lease or Sell
- Sell or Process Further (Not available – Under construction)
Click the topics above for an in-depth review of each differential analysis scenario.
Click the button below to start the first lesson: Make vs. Buy.
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