Which of the following variables would you suspect to be least significant in a sensitivity analysis of a fast-food establishment?
A) Sales
B) Depreciation schedule
C) Labor cost
D) Food cost

Question

Quizplus · Accepted Answer

Depreciation schedule is a fixed cost and is unlikely to vary significantly in a sensitivity analysis. The other variables, such as sales, labor cost, and food cost, are more likely to fluctuate and have a greater impact on the business's profitability.

Which of the Following Variables Would You Suspect to Be