Which one of the following types of analysis is the most complex to conduct?
A) Scenario
B) Break-even
C) Sensitivity
D) Degree of operating leverage
E) Simulation

Question

Quizplus · Accepted Answer

Simulation analysis involves creating a virtual model of a real-life situation and running multiple scenarios to determine potential outcomes under various conditions. It is the most complex analysis to conduct because it requires extensive data inputs and advanced computational methods to generate accurate results. The other types of analysis listed are comparatively simpler and require less extensive calculations.

Which One of the Following Types of Analysis Is the Most