With the aid of computer software, managers can vary assumptions regarding selling prices, costs, and volume and can immediately see the effects of each change on the break-even point and profit. This is called:
A) "What if" or sensitivity analysis
B) vary the data analysis
C) computer aided analysis
D) data gathering

Question

Quizplus · Accepted Answer

The given scenario describes "What if" or sensitivity analysis, which allows managers to vary assumptions and immediately see the effects on break-even point and profit with the aid of computer software. Therefore, the correct choice is A. The other options - B, C, and D are not relevant to the given scenario.

With the Aid of Computer Software, Managers Can Vary Assumptions