Learning Team Reflection - Team D
Learning Team Reflection
Incremental analysis is a process that is used to determine the financial data changes that can occur when an alternate course of action is available (Kimmel, Weygandt, & Kieso, 2011). In the everyday context, incremental is used to describe something added or gained, such as an increase in size or quantity. In Mathematics, incremental is the adjective of increment which means a small positive or negative change in the value of a variable" ("The Free Dictionary By Farlex", 2013). Comprehensive analysis is the understanding of the full accounting picture. Combining the knowledge of financial and managerial accounting to understand an organization's financial operations from top to bottom with the ability to predict future state is essential. In the past six weeks, Team D has used variables to determine change and express them in relation to everyday life. The change in variables can play a factor in the over-and-under spending against an approved budget. Both incremental and comprehensive analysis inevitably involve estimates and uncertainty, therefore, the economic reasons may differ based on means and needs.
Incremental analysis is considered to be a short-run decision maker where revenue and cost are the economic figures compared when determining various alternatives of a business or managerial decision. For example, most car owners do not know how to fix their car; therefore, they take it to a mechanic. A mechanic understands the value of owning a car rather than financing one. From an economic standpoint, owning a car and knowing how to fix its problems would be a good economic decision, the car owner would have a maximum benefit in which he or she would be able to cover all their costs. Owning a car also eliminates a monthly finance charge. The purchase or ownership of a car is a predetermined cost that cannot be changed because the money is...