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.
A)leverage
B)scenario
C)break-even
D)sensitivity
E)cash flow

Question

Quizplus · Accepted Answer

Sensitivity analysis examines how variations or changes in a particular variable such as the variable cost estimate will influence the final outcome of the project. Therefore, it is the best analysis method to determine the effect of inaccuracy in variable cost estimates on the project.

To Ascertain Whether the Inaccuracy of the Variable Cost Estimate