With the Aid of Computer Software, Managers Can Vary Assumptions

question 54

Multiple Choice

With the aid of computer software, managers can vary assumptions regarding selling prices, costs, and volume and can immediately see the effects of each change on the break-even point and profit. This is called

• A) "what if" or sensitivity analysis
• B) vary the data analysis
• C) computer-aided analysis
• D) data gathering

---

Definitions:

Price

The total funds necessary to acquire a commodity, service, or asset.

Output

The amount of goods or services produced by a business, industry, or economy.

Production and Pricing

The process of determining the cost and price for goods or services created by a business.

External Benefits

Advantages or positive effects that extend to parties not directly involved in a transaction or activity.