This Analytical Technique Uses Historical Data to Make Estimates of Future

question 46

Multiple Choice

This analytical technique uses historical data to make estimates of future numbers.

• A) cost-benefit analysis
• B) risk assessment
• C) implementation analysis
• D) projection

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Definitions:

Maximizing Profits

The process of optimizing the difference between revenue and costs to achieve the highest possible profit.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.

Output Level

The quantity of goods or services produced by a company, industry, or economy within a certain period.

Total Costs

The total of all costs associated with the creation of goods or services, encompassing both constant and fluctuating expenses.