Question

The name for a variety of methods used to examine how an amount will change if factors involved in predicting that amount change is: Cost analysis. Cost-volume-profit analysis. Sensitivity analysis. Contribution margin analysis. Factor analysis.

Answer 1

Sensitivity analysis.

Step-by-step explanation:

Sensitivity analysis studies how an economic variable would change due to changes in one of the input variables.

Due to the fact that the future is uncertain, it would be wise to accommodate a varying range of scenarios to be able to be well prepared for the future.

Sensitivity analysis involves changing one input at a time to determine how they would affect results.

For example, in determining NPV, there can be different ranges of discount rate

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