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

A fast-food establishment is unlikely to have significant sensitivity to its depreciation schedule, which is a non-cash expense. Sales, labour cost, and food cost are all directly tied to the daily operations and revenue of the establishment, and changes to these variables would significantly impact profitability.

Which of the Following Variables Would You Suspect to Be