In the Typical Scenario Planning Exercise

question 70

Multiple Choice

In the typical scenario planning exercise,

• A) most scenarios are pessimistic.
• B) most scenarios are optimistic.
• C) some scenarios are optimistic and some scenarios are pessimistic.
• D) only worst-case outcomes should be considered.
• E) only best-case outcomes should be considered.

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Definitions:

Cost-Benefit Constraint

The principle that actions or decisions should only be taken or made if the benefits outweigh the costs.

Conservation Principle

A principle in physics stating that certain properties such as mass, energy, or charge in an isolated system remain constant over time.

Perpetual Inventory System

An inventory accounting system where updates are made continuously to the inventory accounts and cost of goods sold as transactions occur.

FIFO

"First In, First Out," an inventory valuation method where the costs of the oldest inventory items are assigned to the cost of goods sold first.