With the aid of computer software, managers can vary assumptions regarding selling prices, costs, and volume and can immediately see the effects of each change on the break-even point and profit. This is called
A) "what if" or sensitivity analysis
B) vary the data analysis
C) computer-aided analysis
D) data gathering

Question

Quizplus · Accepted Answer

The described process is known as "what if" or sensitivity analysis, where managers can use computer software to change variables and see the immediate effects on break-even point and profit.

With the Aid of Computer Software, Managers Can Vary Assumptions