Examlex
What is the purpose of the sensitivity analysis?
Misallocation
The inefficient distribution or use of resources in a manner that does not maximize efficiency or value.
Materials Quantity Variance
The difference between the actual quantity of materials used in production and the expected quantity of materials supposed to be used, multiplied by the standard cost per unit.
Standard Quantity
The predetermined amount of materials or inputs that should be used in the production of goods or services under normal operating conditions.
Standard Price
A predetermined cost assigned to goods and services, used for budgeting, cost control, and performance evaluation purposes.
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