If a 20 Percent Reduction in Forecast Sales Would Not

question 46

Multiple Choice

If a 20 percent reduction in forecast sales would not extinguish a project's profitability, then sensitivity analysis would suggest:

• A)de-emphasizing that variable as a critical factor.
• B)requiring a more detailed sales forecast.
• C)the initial sales forecasts were inflated.
• D)a reallocation of fixed costs to this product.

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Definitions:

Receptive Field

Region of sensory space (for example, skin surface) in which a stimulus modifies a receptor’s activity.

Distortion

A transformation that alters the original shape, sound, or form of something.

Sclera

The white outer layer of the eyeball, providing protection and form.

Facial Gestures

Expressive movements of the face that communicate emotions or intentions without using words.