Sensitivity analysis allows a business person an opportunity to test out assumptions and view the potential financial impact of assumptions about future income and expenses prior to committing any new resources.

Question

Quizplus · Accepted Answer

Sensitivity analysis is a tool used to test out the impact of assumptions on financial outcomes before committing to any new resources or making important business decisions. It helps business people gain insight into how different variables affect the projected financial outcomes, which helps them make better-informed decisions. So, the given statement is true.

Sensitivity Analysis Allows a Business Person an Opportunity to Test