Sensitivity Analysis Is a What-If Technique That Examines the Impact

question 122

True/False

Sensitivity analysis is a what-if technique that examines the impact of changes in assumptions.

---

Definitions:

Activity-Based Costing

A costing method that assigns overhead and indirect costs to related products and services based on the activities they require.

Direct Labor-Hours

The total amount of time spent by workers directly involved in the manufacturing activities.

Activity-Based Costing

A method in accounting that assigns costs to products and services based on the resources they consume.

Direct Materials Cost

The expense incurred for materials that are an integral part of a finished product, which can be directly attributed to the product itself.