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CIMAPRO19-P01-1 Exam - Topic 10 Question 69 Discussion

Select the benefits to a company of using sensitivity analysis in investment appraisal.(Select all the true statements.)
A) Sensitivity analysis enables a company to determine the effect of changes to variables on the planned outcome. and B) Sensitivity analysis enables a company to assess the risk associated with a project. and D) Sensitivity analysis enables risk management strategies to be put in place to focus on those variables of special significance.
C) Sensitivity analysis enables identification of fixed costs that are of special significance.

CIMAPRO19-P01-1 Exam - Topic 10 Question 69 Discussion

Actual exam question for CIMA's CIMAPRO19-P01-1 exam
Question #: 69
Topic #: 10
[All CIMAPRO19-P01-1 Questions]

Select the benefits to a company of using sensitivity analysis in investment appraisal.

(Select all the true statements.)

Show Suggested Answer Hide Answer
Suggested Answer: A, B, D

References:


by Glen at Apr 21, 2023, 06:01 PM

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Sarah
10 months ago
Wait, can sensitivity analysis really do all that? Sounds too good to be true.
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Dorethea
10 months ago
D is spot on, it helps prioritize what to focus on!
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Dorcas
10 months ago
C seems off, sensitivity analysis isn't really about fixed costs.
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My
11 months ago
Totally agree with B, assessing risk is crucial!
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Lynna
11 months ago
A is definitely true, it shows how changes impact outcomes.
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Amie
11 months ago
D sounds right to me because it makes sense that you would want to focus on significant variables for risk management, but I need to double-check my notes on that.
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Ozell
11 months ago
I practiced a similar question where B was highlighted as a key benefit, so I feel confident that assessing risk is part of sensitivity analysis.
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Felicitas
11 months ago
I'm a bit unsure about C. I thought sensitivity analysis was more about variable changes rather than identifying fixed costs specifically.
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Lamar
11 months ago
I remember sensitivity analysis helps in understanding how changes in variables affect outcomes, so I think A is definitely true.
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Diego
11 months ago
Hmm, I'm a bit confused by the different costing methods. I'll need to make sure I understand how traditional absorption costing and ABC work before I can confidently answer this.
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Brinda
11 months ago
This question seems straightforward. I think the key is understanding how risk attitude can affect the measurement of probability and impact, which is option A.
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Ivory
11 months ago
I think Q.931 is definitely one of the signaling protocols we covered for H.323, but I'm a bit unsure about the others.
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