One Characteristic of Scenario Analysis Is That

question 118

Multiple Choice

One characteristic of scenario analysis is that:

• A)it allows only one variable at a time to change.
• B)it limits variation to only three of the more likely variable combinations.
• C)all or nearly all variations are analyzed, regardless of likelihood.
• D)managers generate each variation by hand.

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Definitions:

Variable Costs

Expenses that vary depending on the amount of products or services a company generates.

Industry Life Cycle

A concept describing the stages of growth, maturity, and decline that industries experience over time.

Stable Growth

A phase where a company or economy grows at a steady, predictable rate.

Sales

The total revenue a company generates through selling goods or services, also commonly used to denote transactions in financial markets.