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Which of the following is not a true statement?

a. Incremental analysis might also be referred to as differential analysis.
b. Incremental analysis is the same as CVP analysis.
c. Incremental analysis is useful in making decisions.
d. Incremental analysis focuses on decisions that involve a choice among alternative courses of action.

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Answer:

Incremental analysis is not the same as CVP analysis

The correct answer is B

Explanation:

CVP analysis is also known  as break-even analysis. It measures an established relationship among cost, volume and profit.

Incremental analysis refers to differential analysis used in decision-making for making choices among alternative courses of action.

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