It has 2 uses:

The SCOPE of Analysis pane sets the limit of DRILL down in the report. Suppose we have a hierarchy defined in 3 levels, but if we set the scope of analysis is set to 2 levels, the report will not be able to drill down to the 3rd level. We can also remove objects showing in the scope of analysis pane and limit the drill down.

If the analysis level is set to custom, the objects from EXISTING HIERARCHIES can be dragged in the scope of analysis panel to set the scope for drilldown in the report. This has an advantage that we can drill down to more than 3 levels, which is not possible in the normal level setting, SINCE it is up to 3 only.

It has 2 uses:

The Scope of Analysis pane sets the limit of drill down in the report. Suppose we have a hierarchy defined in 3 levels, but if we set the scope of analysis is set to 2 levels, the report will not be able to drill down to the 3rd level. We can also remove objects showing in the scope of analysis pane and limit the drill down.

If the analysis level is set to custom, the objects from existing hierarchies can be dragged in the scope of analysis panel to set the scope for drilldown in the report. This has an advantage that we can drill down to more than 3 levels, which is not possible in the normal level setting, since it is up to 3 only.