incremental analysis
[ɪnˈkrɛməntəl əˈnæləsɪs]
nounpl: incremental analyses
análise incremental
1. A management accounting technique that examines only the changes in costs and revenues that result from a specific decision or action, ignoring all costs and revenues that remain the same regardless of the decision
The company used incremental analysis to determine whether it should accept a special order at a lower price.
A empresa utilizou análise incremental para determinar se deveria aceitar um pedido especial com um preço mais baixo.
2. A method of evaluating alternative courses of action by comparing only the relevant differences in costs and benefits between options
Through incremental analysis, management discovered that outsourcing production would save $50,000 annually.
Por meio da análise incremental, a administração descobriu que terceirizar a produção economizaria $50.000 anuais.
3. A decision-making tool that focuses on marginal costs and revenues rather than total costs and revenues
Incremental analysis is particularly useful for make-or-buy decisions in manufacturing.
A análise incremental é particularmente útil para decisões de fazer ou comprar na fabricação.
Incremental analysis is a foundational concept in management accounting, taught extensively in business schools in both Brazil and the United States. It represents a shift from traditional full-costing approaches to a more pragmatic, decision-focused methodology. In Brazil, this technique has become increasingly important as organizations seek to improve financial decision-making and operational efficiency. The concept emphasizes practical, forward-looking analysis rather than historical accounting data.
Related Idioms & Phrases
focus on the relevant numbers
ignore sunk costs
compare the bottom-line differences
evaluate the marginal impact
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