Spreadsheets Are Used in Financial Modeling

question 83

Multiple Choice

Spreadsheets are used in financial modeling.Once you have set up the basic formula it is easy to determine the effect of changing price,costs,volume amounts,or any other variable deemed important to the analysis.This analysis is called which of the following?

• A)"single substitution" analysis
• B)"variable substitution" analysis
• C)"multiple substitution" analysis
• D)"what-if" analysis.

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Definitions:

Functional Level

The operational level in an organization where specific, routine tasks and procedures are carried out, essential to the execution of organizational strategies.

Strategy

A plan of action or policy designed to achieve a major or overall aim.

CEO

Chief Executive Officer, the highest-ranking executive in a company, responsible for major corporate decisions and overall management.

Corporate Level

Pertains to the highest strategic tier in an organization, involving decisions that affect the company as a whole.