Which of the Following Statements About Scenario Analysis Is Not

question 45

Multiple Choice

Which of the following statements about scenario analysis is not true?

• A) It involves multiple forecasts
• B) There are longitudinal and cross-sectional scenarios
• C) Longitudinal scenarios are the most common
• D) It was the brainchild of futurist Herman Kahn
• E) Scenario writing is a highly qualitative procedure

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Definitions:

Net Operating Income

The total profit of a company after operating expenses are subtracted from operating revenues.

Variable Costing

A costing method in which all variable manufacturing costs (direct materials, direct labor, and variable manufacturing overhead) are treated as product costs, while fixed overhead is treated as a period cost.

Absorption Costing

An accounting method that includes all manufacturing costs in the cost of a product, including fixed and variable costs.

Variable Costing

A costing method that includes only variable production costs (materials, labor, and overhead) in product costs.