Sensitivity Analysis Helps to

question 54

Multiple Choice

Sensitivity analysis helps to

• A) see the value of increased scarce resources
• B) determine even better solutions
• C) see the impact of parameter changes
• D) A and C
• E) A, B, and C

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Definitions:

Research And Development

Encompasses the investigative activities a business conducts to improve existing products and procedures or to lead to the development of new products and procedures.

Overhead Rate

A method for distributing overhead expenses to goods or services, usually depicted as a ratio or percentage.

Direct Labour

The labor costs of employees who are directly involved in the manufacturing or production process of goods.

Inventories

Assets held for sale in the ordinary course of business, or goods that will be used or consumed in the production of goods to be sold.