The answer is both YES and NO.
No because Magento does not give you this feature from right out of the box (at-least at this point in time). You will either have to install some 3rd party extention or hack your way around the source code.
Yes because you can use Configurable Products to achieve the desired functionality. Though, this can be a tedious process but I like it over using 3rd party extensions. Magento 1.4 (and onwards) has improvements that address this issue. Have a look at this tutorial to get an idea. Here is the video version of the same tutorial.
