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Explain What Is Meant by Sensitivity Analysis in Budgeting, and Discuss

question 18

Essay

Explain what is meant by sensitivity analysis in budgeting, and discuss how managers might use sensitivity analysis in practice.


Definitions:

Global Economy

The international network of economic activities, trades, and policies that connect the world’s economies, influencing global business and markets.

Whaling

The practice or industry of hunting whales for their usable products like meat, oil, and blubber.

Lucrative Business

A highly profitable enterprise, activity, or venture that generates a significant amount of revenue relative to its costs.

Raw Materials

Basic materials that are used in the production of goods, finished products or intermediate materials that are feedstock for future finished products.

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