Which Type of Analysis Assists with Understanding Why Something Happened

question 23

Multiple Choice

Which type of analysis assists with understanding why something happened during the third step of the AMPS model,performing the analysis?

• A)Descriptive.
• B)Diagnostic.
• C)Predictive.
• D)Prescriptive.

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Definitions:

Standard Price

Standard price is a predetermined cost assigned to materials and goods, used in budgeting and costing calculations.

Actual Price

The real price at which a transaction takes place, unaffected by any discounts or premiums.

Variable Budget

A budget that adjusts spending levels based on changes in actual revenue or other financial indicators.

Variable Costs

Expenses that change in proportion to the activity of a business, such as costs for raw materials or production supplies.