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Is it the major function of management accounting ? What is incremental profit analysis ? What affects the decision to start continue or stop a product line ?
What affects the decision to start continue or stop a product line
Are you asking about "Plan B"? I keep hearing this with senior management often....
the alternatives is one step of decision making. And finally we choose the best alternative which is the decision.
I see that any decision indicates that you have alternative choices (at least go/no-go).
Incremental profit analysis is the analysis done to define change in profits expected from an investment.
A decision to start/continue/stop a product line is affected by forecasted profitability. This impact results from forecasted changes in demand, forecasted changes in supply, or anticipated canges in production capacity.
