Cost Management: A Strategic Emphasis 5th Edition by David Stout, Edward Blocher, Gary Cokins

Exercise 12

Distinguish between the terms sensitivity analysis and what-if analysis.

Step 1 of 2

Strategic planning and master budgeting process help the planners in forecasting the possible outcomes of the operations. This forecasting helps in understanding whether the goals of the organization will be achieved or not. There will be a dilemma or uncertainty as the budget is based on forecasting and not on actual values.