Sensitivity Analysis Helps You Determine The

question 9

Multiple Choice

Sensitivity analysis helps you determine the:

• A) range of possible outcomes given possible ranges for every variable.
• B) degree to which the net present value reacts to changes in a single variable.
• C) net present value given the best and the worst possible situations.
• D) degree to which a project is reliant upon the fixed costs.

---

Definitions:

Goal-Sharing

A strategy where organizational goals are communicated to employees, ensuring that everyone understands their role in achieving these objectives, often linked to performance and incentives.

Gain-Sharing Plans

Incentive plans that reward employees for contributing to the company's efficiency and productivity improvements by sharing the resulting financial gains.

Profit-Sharing Plans

An incentive plan in which employees receive a portion of the company's profits, typically allocated based on the company's earnings over a set period.

Deferred Plan

A type of savings plan that allows employees to defer a portion of their income to a later date, typically used for retirement savings.