________ Is a "What If" Technique That Estimates Profit or Loss

question 15

Multiple Choice

________ is a "what if" technique that estimates profit or loss results if selling price,costs,volume,or underlying assumptions change.

• A) High-low method of analysis
• B) Sensitivity analysis
• C) Contribution margin
• D) Operating leverage

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Definitions:

Mutually Exclusive

A situation where the occurrence of one event means the other cannot occur at the same time.

NPV

Net Present Value, a calculation used to assess the profitability of an investment, considering the time value of money.

Discounted Payback Period

The period it takes for the cash flows from a capital investment project to equal the initial investment cost, considering the time value of money.

After-Tax Cash Flows

After-tax cash flows are the net cash inflows and outflows of a business after taxes have been accounted for, used in analysis of investment projects.