The technique which takes a single variable and examines the effect of changes in that variable on the likely performance and position of the business is known as:
A) sensitivity analysis.
B) historic analysis.
C) performance analysis.
D) management analysis.

Question

Quizplus · Accepted Answer

Sensitivity analysis is a technique used to analyze the sensitivity of a business's performance or position to changes in a single variable. It helps businesses understand the impact of changes in variables such as sales, costs, or interest rates on their financial performance. Other options listed, such as historic analysis, performance analysis, or management analysis, do not specifically focus on the impact of changes in a single variable on a business's performance.

The Technique Which Takes a Single Variable and Examines the Effect