The Name for a Variety of Methods Used to Examine

question 91

Multiple Choice

The name for a variety of methods used to examine how an amount will change if factors involved in predicting that amount change is:

• A) Sensitivity analysis.
• B) Contribution margin analysis.
• C) Factor analysis.
• D) Cost analysis.
• E) Cost-volume-profit analysis.

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Definitions:

Usefulness to Management

The extent to which information or data can aid managers in making informed decisions regarding the operations and strategy of a business.

Conversion Costs

The sum of direct labor and manufacturing overhead costs incurred to convert raw materials into finished products.

Factory Overhead

All indirect costs associated with manufacturing, excluding direct materials and direct labor, like utilities and depreciation.

Selling Expenses

Costs associated with the marketing and distribution of a company's products or services, including advertising, sales personnel salaries, and commissions.