A Deviation from Standard Because of an Inaccurate Estimation of the Amounts

question 118

Multiple Choice

A deviation from standard because of an inaccurate estimation of the amounts for variables used in the standard-setting process is an example of a(n) :

• A) Random error.
• B) Prediction error.
• C) Implementation error.
• D) Modeling error.
• E) Measurement error.

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Definitions:

Investigation

The process of inquiring, analyzing, and researching to gather facts and information about a specific subject or activity.

Business Case

A documented argument or rationale for initiating a project or task, outlining the benefits, costs, and risks.

Breakeven Analysis

Breakeven analysis is a financial evaluation to determine the point at which a business, product, or service becomes profitable, balancing costs with revenue.

NPV

Net Present Value, a financial metric that calculates the difference between the present value of cash inflows and outflows over a period of time, used to assess the profitability of an investment.