Which of the following is NOT correct?
A) Forecasting risk is the possibility that errors in projected cash flows lead to incorrect decisions
B) Scenario analysis is the determination of what happens to NPV estimates if we ask what-if questions
C) Sensitivity analysis is an investigation of what happens to NPV when only one variable is changed
D) Simulation analysis is a combination of scenario and sensitivity analysis
E) Fixed costs are costs that change when the quantity of output changes during a particular time period

Question

Quizplus · Accepted Answer

Fixed costs are costs that do not change with the quantity of output produced during a particular time period, contrary to what is stated in option E.

Which of the Following Is NOT Correct