Systematically varying budget data input to determine the effects of each change on the budget is called ________ analysis.
A) operating budget
B) financial budget
C) sensitivity
D) master budget

Question

Quizplus · Accepted Answer

Sensitivity analysis involves systematically varying inputs to a model or analysis to assess the effects of each change on the outcome, which in this case is the budget. Operating budget refers to a detailed projection of expected revenue and expenses for a specific period, while financial budget includes overall financial goals and objectives for the organization. Master budget encompasses all the budgets, schedules, and action plans that an organization uses to meet its financial goals.

Systematically Varying Budget Data Input to Determine the Effects of Each