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.

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Definitions:

Problem Solving

The process of identifying a challenge and finding an effective solution to overcome it.

Important Problems

Refers to issues or challenges that are critical to address due to their potential impact on the success and sustainability of a project, organization, or community.

Problem Solving

The process of identifying a problem, generating potential solutions, and implementing a strategy to resolve it effectively.

Disruptions

Disturbances or problems that interrupt an event, activity, or process, often leading to the requirement for adjustment or a response.