A Fundamental Forecast That Uses Multiple Values of the Influential

question 96

Multiple Choice

A fundamental forecast that uses multiple values of the influential factors is an example of:

• A) sensitivity analysis.
• B) discriminant analysis.
• C) technical analysis.
• D) factor analysis.

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Definitions:

Operating Income

Earnings from a company's main business activities, excluding expenses such as interest and taxes.

Variances

The difference between planned or expected results and actual results in financial performance.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and profit or loss.

Standard Direct Materials

The predetermined cost and quantity of direct materials that are expected to be used in the production of a product.