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How Does Scenario Analysis Differ from Sensitivity Analysis

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How does scenario analysis differ from sensitivity analysis?


Definitions:

Machine-Hours

A measure of the amount of time machines are operated during the production process, used for allocating costs or measuring productivity.

Markup

The additional sum included in the purchase price of products to account for overhead expenses and profit.

Variable Manufacturing Overhead

Expenses that vary with production volume, such as utilities and materials.

Job Cost

The total expense calculated for a specific job or project, including materials, labor, and overhead.

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