The value of budgets to managers in their strategic analysis and planning is enhanced by

Question

Quizplus · Accepted Answer

Conducting sensitivity analysis allows managers to assess the impact of different assumptions or changes in their budget on the overall strategic plan. This provides a more comprehensive understanding of potential risks and opportunities, and helps inform decision-making. While value based budgeting, lines of responsibility, organizational structure and operating plan are all important components of budgeting, conducting sensitivity analysis is specifically relevant to enhancing the value of budgets to strategic analysis and planning.

The Value of Budgets to Managers in Their Strategic Analysis