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

Actual exam question for CIMA's CIMAPRO19-P01-1 exam

Question #: 69
Topic #: 10

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

(Select all the true statements.)

ASensitivity analysis enables a company to determine the effect of changes to variables on the planned outcome.

BSensitivity analysis enables a company to assess the risk associated with a project.

CSensitivity analysis enables identification of fixed costs that are of special significance.

DSensitivity analysis enables risk management strategies to be put in place to focus on those variables of special significance.

Show Suggested Answer

Suggested Answer: A, B, D

References:

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

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Sarah

4 months ago

Wait, can sensitivity analysis really do all that? Sounds too good to be true.

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Dorethea

4 months ago

D is spot on, it helps prioritize what to focus on!

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Dorcas

4 months ago

C seems off, sensitivity analysis isn't really about fixed costs.

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My

4 months ago

Totally agree with B, assessing risk is crucial!

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Lynna

4 months ago

A is definitely true, it shows how changes impact outcomes.

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Amie

5 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

5 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

5 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

5 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

5 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

5 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

5 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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