Deck 10: Performing What If Analyses

Question 1

The $\underline {\text { result } }$ cells are the cells containing the values you want to examine._________________________

Answer 1

True

Question 2

A(n) $\underline { \text { mixed } }$ expense is an expense that is part variable and part fixed._________________________

Answer 2

True

Question 3

In traditional what-if analysis,you change $\underline {\text { result } }$ values in worksheet cells._________________________

Answer 3

False

Question 4

$\underline {\text { Variable } }$ expenses change in proportion to the company's sales volume._________________________

Question 5

CVP analysis is sometimes called $\underline { \text { breakthrough } }$ analysis._________________________

Question 6

You cannot merge scenarios in situations involving multiple workbooks.

Question 7

$\underline { \text { Goal Seek } }$ is a program that searches for the optimal solution of a problem involving several variables._________________________

Question 8

At the break-even point,revenue equals expenses.

Question 9

A limits report allows you to quantify the reliability of a solution produced by Solver.

Question 10

A(n) $\underline { \text { optimal } }$ cell is a cell that Excel changes to produce the desired result in the target cell._________________________

Question 11

If your input values are in a column,you will use the Column input cell option when you use the Data Table command.

Question 12

To open the Goal Seek dialog box,first click the What-If Analysis button in the Data Tools group.

Question 13

Solver is an add-in,a program that adds customized commands and features to Microsoft Office programs such as Excel.

Question 14

The sensitivity report is most often used in science and engineering environments.

Question 15

An array $\underline {\text { argument } }$ performs multiple calculations on one or more sets of values and then returns either a single value or multiple values._________________________

Question 16

-The items marked 1 in the accompanying figure are the $\underline { \text { result } }$ cells._________________________

Question 17

As in traditional what-if analysis,Goal Seek starts with the end result and determines what value you should use to reach a desired answer.

Question 18

The item marked 1 in the accompanying figure indicates the profit.

Question 19

Two-variable data tables are often used to explore the impact of changing two values on a single result.

Question 20

$\underline { \text { Nonbinding } }$ constraints always show a slack of 0._________________________

Question 21

Before using Scenario Manager,you should assign _______ to all the input and result cells you intend to use in your scenarios.

A)cells
B)names
C)ranges
D)ranks

Question 22

With Goal Seek,you specify the _______ values you want.

A)result
B)constraint
C)exchange
D)index

Question 23

Which of the following expense types can be used in a CVP analysis?

A)static
B)variable
C)dynamic
D)declining

Question 24

Goal Seek uses a different approach from traditional _______ analysis.

A)trial-and-error
B)what-if
C)worksheet
D)hypothetical

Question 25

_______ analysis is an important business decision-making tool because it predicts the effect of cutting overhead or raising prices on net income.

A)CVP
B)MVP
C)EVP
D)AVP

Question 26

All three expense types can be classified as _______.

A)mixed, fixed, and CVP
B)variable, fixed, and mixed
C)asset-based, fixed, and mixed
D)variable, fixed, and cost-based

Question 27

The item marked 3 in the accompanying figure indicates the _______ expenses.

A)fixed
B)mixed
C)variable
D)absolute

Question 28

To select nonadjacent changing cells,press and hold the _______ key as you click each cell.

A)Alt
B)Shift
C)Esc
D)Ctrl

Question 29

The accompanying figure is a typical _______ chart.

A)AVP
B)CVP
C)EVP
D)MVP

Question 30

If you orient a one-variable table so that the input values are in the first row,you would use the _______ input cell option.

A)Column
B)Row
C)Values
D)Table

Question 31

The item marked 4 in the accompanying figure indicates the _______ expenses.

A)fixed
B)mixed
C)variable
D)absolute

Question 32

The items marked 1 in the accompanying figure are _______ cells.

A)result
B)constraint
C)input
D)goal

Question 33

A business must pay insurance and rent;these are examples of _______ expenses.

A)fixed
B)variable
C)mixed
D)transitional

Question 34

Once you enter an array formula,Excel will enclose the formula in a set of _______.

A)parentheses
B)curly braces
C)brackets
D)quotation marks

Question 35

_______ analysis expresses the relationship between a company's expenses,its volume of business,and the resulting profit.

A)MVP
B)ABC
C)CVP
D)CBP

Question 36

The item marked 2 in the accompanying figure is the _______ point.

A)variable
B)fixed
C)break-even
D)absolute

Question 37

{=SUM(B1:B10*C1:C10)} is an example of a(n)_______.

A)array formula
B)TABLE function
C)scenario
D)input value

Question 38

To perform a what-if analysis with more than two input cells,you _______.

A)hide all references
B)use only exchange values
C)apply additional constraints
D)create scenarios

Question 39

In two-variable tables,you must always place a reference to the result cell in the _______ corner of the table at the intersection of the row values and the column values.

A)upper-right
B)upper-left
C)lower-right
D)lower-left

Question 40

To calculate multiple cell values,select the range and type the array formula,then press the _______ keys to enter the formula.

A)Alt+Enter
B)Ctrl+Shift+Enter
C)Alt+Shift+Enter
D)Ctrl+Enter

Question 41

Aside from Solver,other Excel _______ provide the ability to perform statistical analyses,generate business reports,and retrieve financial data from the Internet.

A)parameters
B)add-ins
C)helper applications
D)constraint applications

Question 42

The slack is the difference between the value in the cell and the value at the limit of the _______.

A)variable cell
B)result cell
C)constraint
D)risk factor

Question 43

A scenario summary report's _______ layout makes it simpler to compare the results of each scenario,and the automatic formatting makes it useful for reports and meetings.

A)portrait
B)tabular
C)row-based
D)columnar

Question 44

The three items that you must specify when using Solver are _______.

A)target cell, input value, and results
B)target cell, variable cell, and parameters
C)variable cell, parameters, and constraints
D)variable cell, objective cell, and constraints

Question 45

You can switch from one scenario to another by clicking the _______ button in the Scenario Manager dialog box.

A)Display
B)View
C)Show
D)Effect

Question 46

The _______ report summarizes the results of a successful solution by displaying information about the target cell,changing cells,and constraints.

A)answer
B)constraint
C)sensitivity
D)limits

Question 47

A(n)_______ procedure means that Solver starts with an initial solution and uses that as a basis to calculate a series of solutions.

A)reciprocal
B)iterative
C)secondary
D)convergent

Question 48

To activate Solver,click Solver Add-In in the _______.

A)Add-Ins dialog box
B)Solver dialog box
C)Analysis group
D)Data Tools group

Question 49

You can include an analysis of the constraints and conditions by which Solver arrived at its solution by creating a(n)_______ report.

A)analysis
B)answer
C)condition
D)constraint

Question 50

The default convergence value in Solver is _______.

A)0.001
B)0.01
C)0.1
D)1.0

Question 51

If Solver is taking too long to find a solution,you can halt the program at any time by pressing the _______ key.

A)Alt
B)Enter
C)Esc
D)Ctrl

Question 52

Binding constraints always show a slack of _______.

A)-0.01
B)0
C)0.01
D)1

Question 53

In Solver,changing cells are sometimes referred to as _______ cells.

A)self-adjusting
B)variable
C)key
D)constraint

Question 54

_______ is a program that searches for the optimal solution of a problem involving several variables.

A)Trial and error
B)Solver
C)Goal Seek
D)Scenario Manager

Question 55

A(n)_______ is a limit that is placed on a Solver problem's solution.

A)max
B)target
C)constraint
D)adjustment

Question 56

Solver can create the following three different reports: _______.

A)sensitivity, answer, analysis
B)constraint, sensitivity, analysis
C)analysis, answer, limits
D)answer, limits, sensitivity

Question 57

After trying out solutions for a short time,Solver displays the _______ dialog box,which displays the message that indicates Solver has found a solution that satisfies the constraints.

A)Solver Answer
B)Solver Solution
C)Solver Results
D)Solution

Question 58

The answer report is divided into _______ sections.

A)two
B)three
C)six
D)five

Question 59

_______ are important because they ensure a realistic solution to your problem.

A)Constraints
B)Parameters
C)Targets
D)Optimals

Question 60

The default length of time that Solver will spend on the iterative process is _______ seconds.

A)50
B)100
C)500
D)1000

Question 61

You are planning to open a new restaurant and need to determine how many dinners need to be sold to stay above the break-even point. You will investigate Cost Volume Profit (CVP), also known as break-even analysis.
When creating a one-variable Data Table,which of the following should you NOT do?

A)Enter a formula that references the input cell in the upper-left cell of the table.
B)Enter input values in either the second row or the first column.
C)Enter input values in either the first row or the first column.
D)Select the table excluding any row or column headings.

Question 62

____________________ cells are cells containing values you want to modify in what-if analysis cells.

Question 63

In a data table,____________________ cells are cells whose values are impacted by the changing input cells.

Question 64

You are planning to open a new restaurant and need to determine how many dinners need to be sold to stay above the break-even point. You will investigate Cost Volume Profit (CVP), also known as break-even analysis.
The data table provides the results of several what-if analyses,but results are often clearer if you include a(n)_______ chart.

A)Excel
B)CVP
C)Goal Seek
D)Income

Question 65

You are planning to open a new restaurant and need to determine how many dinners need to be sold to stay above the break-even point. You will investigate Cost Volume Profit (CVP), also known as break-even analysis.
Another tool to help analyze several what-if analyses is data tables in Excel.Using a one-variable table,you can specify _______ input cell(s)and any number of result cells.

A)many
B)one
C)two
D)three

Question 66

You are planning to open a new restaurant and need to determine how many dinners need to be sold to stay above the break-even point. You will investigate Cost Volume Profit (CVP), also known as break-even analysis.
In building an Income statement worksheet,you will calculate variable and fixed expenses based on number of meals sold.To explore the impact of changing different values in the worksheet,you can use _______.

A)Solver manager
B)Income Statement Analysis
C)What-If analysis
D)Cash Flow analysis

Question 67

The item marked 2 in the accompanying figure is the scenario ____________________.

Question 68

To set up a(n)____________________ table,you first insert references to the input and result cells.

Question 69

Aria explains that there are six possible constraints supported by Solver.Which of the following is one of those constraints?

A)!=
B)>=
C)
D)#

Question 70

____________________ expenses change in proportion to the amount of business a company does.

Question 71

As you begin to work with Solver, you have questions. So you turn to your co-worker, Aria, who you know is an expert in its usage.
Aria explains to you that if you want to use Solver to maximize a company's net income,you first need to understand that a(n)_______ is a cell that is maximized,minimized,or set to a specific value.

A)goal cell
B)objective cell
C)changing cell
D)constraint

Question 72

As you begin to work with Solver, you have questions. So you turn to your co-worker, Aria, who you know is an expert in its usage.
Aria explains that if you have a cell that is the sales price of a given product,the value of which will change to produce the desired Solver result in the target cell,this cell is what kind of cell?

A)goal cell
B)constraint
C)changing cell
D)absolute cell

Question 73

Cells that display the value _______ indicate that all of the values in the worksheet satisfy the Solver constraints.

A)TRUE
B)YES
C)1
D)0

Question 74

The default convergence value is 0.001,which means that if the change in the value of the objective cell between the new solution and the previous solution is _______ 0.001,Solver stops the interative process and reports the current solution.

A)equal to
B)less than or equal to
C)greater than or equal to
D)greater than

Question 75

A(n)____________________ expense is an expense that must be paid regardless of sales volume.

Question 76

If a value in the worksheet violates one of the constraints,the Solver parameter cells will display the value _______.

A)FALSE
B)NO
C)1
D)0

Question 77

You are planning to open a new restaurant and need to determine how many dinners need to be sold to stay above the break-even point. You will investigate Cost Volume Profit (CVP), also known as break-even analysis.
First you must understand break-even analysis.The definition of break-even point is where the total revenue _______ total expenses.

A)is less than
B)is greater than
C)equals
D)exceeds

Question 78

In your company,there is a physical limit on the number of products that the factories can produce in a given year.What does Aria tell you this limit is called,in Solver's terms?

A)changing cell
B)objective cell
C)goal cell
D)constraint

Question 79

The ____________________ input cell is the cell on which values placed in the first column of the data table are based.

Question 80

When creating a(n)____________________ data table,you must identify the row input cell and the column input cell.