When performing sensitivity analysis,which of the following is an example of a variable that management may consider changing to answer "what if" questions?
A) Variable cost per unit
B) Sales price per unit
C) Fixed cost per unit
D) Both variable cost per unit and sales price per unit are correct.

Question

Quizplus · Accepted Answer

Both variable cost per unit and sales price per unit are examples of variables that management can consider changing during sensitivity analysis. By changing these variables, management can analyze the impact of different scenarios on the company's profitability and make informed decisions. Fixed cost per unit is not a variable that can be easily changed in the short term, so it is not a good example for sensitivity analysis.

When Performing Sensitivity Analysis,which of the Following Is an Example