An Analysis of What Happens to the Estimate of Net

question 58

Multiple Choice

An analysis of what happens to the estimate of net present value when only one variable is changed is called _____ analysis.

• A) forecasting
• B) scenario
• C) sensitivity
• D) simulation
• E) break-even

---

Definitions:

Social Security Tax

A tax that funds the Social Security program, which provides retirement benefits, disability income, and other payments to eligible individuals.

Payroll Tax Expense

The taxes that an employer incurs based on employee wages, including Social Security and Medicare taxes.

Interest Calculations

The process of determining the interest earned or paid over a specific period of time based on the principal amount and the rate of interest.

Journalize

The process of recording transactions in a company's journal as part of the accounting cycle.