Define Sensitivity Analysis

question 44

Essay

Define sensitivity analysis.Why do managers conduct sensitivity analysis during the budget process?

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Definitions:

Top Executives

are the highest-ranking employees in a company or organization, responsible for making major corporate decisions.

Autocratic Control

Refers to a management style where decision-making powers are centralized in the hands of one individual, with little to no input from subordinates.

Organizations

Structured groups of individuals working together to achieve shared goals through a systematic arrangement of resources, information, and activities.

Performance Threat

A situation in which something is obviously wrong or has the potential to go wrong.