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Select the benefits to a company of using sensitivity analysis in investment appraisal.
(Select all the true statements.)
Suggested Answer: A, B, D
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12 comments · newest first
SA
Sarah
12 months ago
Wait, can sensitivity analysis really do all that? Sounds too good to be true.
DO
Dorethea
12 months ago
D is spot on, it helps prioritize what to focus on!
DO
Dorcas
1 year ago
C seems off, sensitivity analysis isn't really about fixed costs.
MY
My
1 year ago
Totally agree with B, assessing risk is crucial!
LY
Lynna
1 year ago
A is definitely true, it shows how changes impact outcomes.
AM
Amie
1 year 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.
OZ
Ozell
1 year 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.
FE
Felicitas
1 year ago
I'm a bit unsure about C. I thought sensitivity analysis was more about variable changes rather than identifying fixed costs specifically.
LA
Lamar
1 year ago
I remember sensitivity analysis helps in understanding how changes in variables affect outcomes, so I think A is definitely true.
DI
Diego
1 year 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.
BR
Brinda
1 year 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.
IV
Ivory
1 year 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.