________ is a "what if" technique that estimates profit or loss results if sales 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 is the "what-if" technique that calculates the impact on profit or loss results when sales price, costs, volume or underlying assumptions change. The high-low method of analysis is a cost estimation technique that identifies the variable cost rate and the fixed cost element of a business expense. Contribution margin is the difference between total sales revenue and variable costs, while operating leverage is the degree to which a company uses fixed costs in its operations.

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