What Is the Analysis That Works in Reverse to What-If

question 50

Multiple Choice

What is the analysis that works in reverse to what-if and sensitivity analysis by finding the inputs necessary to achieve a goal, such as a desired level of output?

• A)solutions-based analysis
• B)optimization system
• C)goal-seeking analysis
• D)revenue analysis

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Definitions:

Fixed Overhead Volume Variance

The difference between the budgeted and applied fixed manufacturing overhead, based on the standard volumes expected to be produced.

Standard Quantity

The expected quantity of materials or inputs required for production under normal conditions.

Standard Hours Allowed

The amount of time that should be spent on producing a certain number of units under normal conditions.

Denominator Activity

A term used in cost accounting to refer to the level of activity used to allocate fixed costs to cost units.