what s a limitation of incremental analysis 
one aspect that companies must be aware of is the potential for cost assumptions to be wrong every effort must be made to make correct cost estimates so that the choice of an opportunity that a business ultimately makes doesn t affect the company negatively the bottom lineincremental analysis is a crucial decision making tool that can help businesses better understand their costs utilize resources efficiently and maximize profit its focus on true costs including opportunity costs and its stripping away of irrelevant information can reveal in a less effort intensive amount of time the most cost effective options for companies to choose from to reach important financial goals 