The Process of Examining How a Change in a Single

question 73

Multiple Choice

The process of examining how a change in a single item in a budget (e.g. ,sales volume) affects one or more items in the budget (e.g. ,budgeted sales revenue and budgeted operating income) is generally referred to as:

• A)Flexible budgeting.
• B)Sensitivity analysis.
• C)Uncertainty programming.
• D)What-if analysis.
• E)Activity-based budgeting (ABB).

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Definitions:

Money Received

The sum of cash or cash equivalents that an entity acquires from various sources, including sales or funding.

Revenue

The sum of money earned from the sale of products or services central to the business's main activities.

Prepaid Expenses

Payments made in advance for goods or services to be received in the future, recorded as assets on a balance sheet and expensed over time as the goods or services are consumed.

Costs Paid

Expenses that a company has incurred and settled through payment.