What "What-If" Technique Examines the Impact on an Answer as a Result

question 69

Multiple Choice

What "what-if" technique examines the impact on an answer as a result of changes in underlying assumptions?

• A) sensitivity training
• B) sensitivity analysis
• C) degree of sensitivity
• D) degree of operating leverage

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Definitions:

Federal Income Tax

The United States federal government imposes a financial charge on the yearly revenues of individuals, corporations, trusts, and other legal entities.

Marginal Tax Rate

The tax rate that applies to the next additional increment of a taxpayer's taxable income.

Taxable Income

The portion of an individual's or a corporation's income that is subject to taxation by the government.

Marginal Tax Rate

The rate of tax applied to the last dollar of income or the next dollar of taxable income earned.