Sensitivity Analysis Helps You Determine The

question 70

Multiple Choice

Sensitivity analysis helps you determine the:

• A)range of possible outcomes given possible ranges for every variable.
• B)degree to which the net present value reacts to changes in a single variable.
• C)net present value given the best and the worst possible situations.
• D)degree to which a project is reliant upon the fixed costs.
• E)level of variable costs in relation to the fixed costs of a project.

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Definitions:

Raw Materials

The unprocessed or minimally processed resources used to produce goods or products, typically extracted from natural sources.

Finished Products

Goods that have completed the manufacturing process and are ready for sale or distribution to customers.

5Ss

A workplace organization methodology focusing on standardizing procedures and optimizing cleanliness and order, originating from five Japanese terms: Seiri, Seiton, Seiso, Seiketsu, and Shitsuke.

Lean Operations

Eliminate waste through a focus on exactly what the customer wants.