Question

To ascertain whether the inaccuracy of the variable cost estimate for a project will have much effect on the final outcome of the project, you should probably conduct ________ analysis

Answer 1

Answer: Sensitivity

Step-by-step explanation:

The sensitivity analysis is one of the concept that helps in understanding the various types of conditions on the basis of the variables that helps in representing the actual valuable price and the earning per share in the financial model.

According to the given question, we should conduct sensitivity analysis when we determine the final outcome of the given project and estimate the inaccuracy in the variable.

Therefore, sensitivity is the correct answer.