The AIS Compiles and Feeds Information Among the Business Cycles

question 71

Multiple Choice

The AIS compiles and feeds information among the business cycles.What is the relationship between the revenue and production cycles regarding the exchange of information?

• A)The revenue cycle provides sales forecast and customer order information to the production cycle,but the production cycle sends information back to revenue about finished goods production.
• B)The revenue cycle receives information from the production cycle about raw materials needs.
• C)The production cycle sends cost of goods manufactured information back to the revenue cycle.
• D)The production cycle does not exchange information with the revenue cycle.

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Definitions:

Sensitivity/Scenario Analysis

Techniques used in financial modeling to examine how different values of an input variable can impact a project or investment's outcome under various scenarios.

Project NPV

This refers to the net present value specifically calculated for a given project, representing the difference between the project's cash inflows and outflows discounted at a particular rate over time.

Probability Distribution

A mathematical function that provides the probabilities of occurrence of different possible outcomes in an experiment.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much the values deviate from the mean.