Discussion8.docx - 1 Incremental analysis is the process of...

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1. Incremental analysis is the process of evaluating the costs and revenues of one alternative over the other, and how those costs and revenues effect future cash flow (“Incremental analysis and decision-making costs,” n.d.). Incremental analysis is an important consideration in the decision making process because it tells the financial manager how much cash is currently available, or will be available in the future to make purchases. If incremental analysis reveals that costs exceed the revenue for one particular sector, the company may be advised to liquidate assets or investments. 2. The phrase “you get what you measured” refers to the quality of performance measures in place at a company (“Managerial accounting in the information age,” n.d.). Good performance measurement practices help financial managers execute their job successfully. Performance
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