To ascertain whether the accuracy of the variable cost estimate for a project will have much effect on the final outcome of the project, you should probably conduct _____ analysis.
A) Leverage.
B) Scenario.
C) Break-even.
D) Sensitivity.
E) Cash flow.

Question

Quizplus · Accepted Answer

Sensitivity analysis is used to determine how different values of an independent variable affect a particular dependent variable under a given set of assumptions. In the context of project management, it helps in understanding how changes in variable costs can impact the final outcome of the project.

To Ascertain Whether the Accuracy of the Variable Cost Estimate