If a project manager wants to know which aspects of a project require the closest monitoring to ensure that the project remains proﬁtable, the manager should use the technique known as _____
Analysis.
A) Sensitivity.
B) Scenario.
C) Simulation.
D) Financial break-even.
E) Cash break-even.

Question

Quizplus · Accepted Answer

Sensitivity analysis is a technique used to identify the variables in a project that have the greatest impact on profitability. By varying these variables, project managers can assess the potential outcomes of different scenarios and make informed decisions to ensure the project remains profitable. This technique is commonly used in financial forecasting and risk management. Scenario analysis and simulation are similar techniques that may also be useful in assessing the profitability of a project, but sensitivity analysis is specifically designed to identify the most critical variables. Financial break-even and cash break-even are methods used to determine the point at which a project becomes profitable, rather than identifying the variables that drive profitability.

If a Project Manager Wants to Know Which Aspects of a Project