Sensitivity Analysis on a Potential Project

question 68

Multiple Choice

Sensitivity analysis on a potential project

• A)is only useful to perform when there are firm calculations on the project available.
• B)is useful to perform when uncertainty exists and calculations are based on estimates.
• C)is designed to ensure that management is aware of all possible outcomes of the project.
• D)is designed to provide an escape-hatch for management should the project not succeed.

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Definitions:

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AASB 138

An Australian Accounting Standards Board standard that prescribes the accounting treatment for intangible assets not covered by other AASB standards.

Research Phase

The research phase is a stage in the development process where efforts are undertaken to acquire new knowledge or understanding without any specific application or usage in mind.

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