Shawn is doing some budgeting for his new start-up business. He has developed a budget in Excel using formulas, as he was taught to do in college. Which of the following statements is true?
A) If Shawn changes one of his assumptions, Excel will automatically recalculate the budget numbers.
B) Shawn would use sensitivity analysis to check the impact of changing his price.
C) Shawn would use roll-up to review his summary numbers.
D) Shawn would use what-if analysis to check the impact of changing his price and the commission he pays his sales people.
E) Shawn would use goal-seeking analysis to examine the impact of changing his forecast of units sold.

Question

Quizplus · Accepted Answer

The statement "If Shawn changes one of his assumptions, Excel will automatically recalculate the budget numbers" is true because Excel formulas automatically recalculate based on changes in input values. The other options describe different types of analysis that Shawn could use to further analyze his budget, but they are not directly related to the fact that Excel will recalculate his budget numbers.

Shawn Is Doing Some Budgeting for His New Start-Up Business