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)labour cost
D)food cost

Question

Quizplus · Accepted Answer

Depreciation schedule is a fixed cost and not subject to fluctuation or variation in the short term. Sensitivity analysis is typically concerned with variables that are subject to change and can have a significant impact on the outcome. Sales, labour cost, and food cost are all variable costs that can impact the profitability of a fast-food establishment.

Which of the Following Variables Would You Suspect to Be