________ is a "what if" technique that estimates profit or loss results if selling price,costs,volume,or underlying assumptions change.
A) High-low method of analysis
B) Sensitivity analysis
C) Contribution margin
D) Operating leverage

Question

Quizplus · Accepted Answer

Sensitivity analysis allows for different scenarios to be tested by changing various input parameters to estimate the impact on profit or loss. The high-low method of analysis is used to separate mixed costs into fixed and variable components. Contribution margin is the difference between total sales revenue and total variable costs. Operating leverage measures the degree of fixed costs in a company's cost structure.

________ Is a "What If" Technique That Estimates Profit or Loss