Analysis results indicate that a project's level of success is primarily dependent upon the firm controlling the variable costs. What type of analysis was conducted?
A) Sensitivity analysis
B) Break-even analysis
C) Scenario analysis
D)Real option analysis

Question

Quizplus · Accepted Answer

Sensitivity analysis evaluates how changes in one variable can impact the overall project or business. In this case, the variable being analyzed is the "variable costs" and how much control the firm has over them. By identifying that controlling the variable costs is the primary factor in a project's success, it suggests that sensitivity analysis was conducted to determine the impact of various levels of control over variable costs on the success of the project.

Analysis Results Indicate That a Project's Level of Success Is