A Model Builder Makes Predictions and Assumptions Regarding the Input

question 42

Multiple Choice

A model builder makes predictions and assumptions regarding the input data,many of which deal with the assessment of uncertain futures.Which of the following attempts to assess the impact of a change in the input data or parameters on the proposed solution?

• A) Mathematical relationships
• B) Decision analysis
• C) Goal programming
• D) Sensitivity analysis

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Definitions:

Manufacturing Overhead

All indirect costs associated with manufacturing, not including direct materials and direct labor.

Plantwide Overhead Rate

A single overhead rate calculated by dividing total factory overhead by a base, used throughout a manufacturing plant for allocating overhead costs to products.

Activity-Based Costing

A method of cost accounting that assigns costs to products or services based on the resources they consume.

Manufacturing Overhead

The indirect costs associated with manufacturing, such as utilities, maintenance, and salaries not directly involved in production.