(Solved):What are some challenges of using incremental cost analysis in public sector financial management?

 

Question

What are some challenges of using incremental cost analysis in public sector financial management?

 

EXPERT ANSWER

Incremental cost analysis is the technique used in decision making to determine the difference between the available alternatives in terms of cost. Moreover, incremental cost analysis has various challenges when applies in the public sector. For instance, the analysis may be complicated due to the incorporation of sunk costs. Moreover, it becomes difficult when funds are

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