Identify and Describe a Key Tool Used in Structured Methodologies

question 56

Essay

Identify and describe a key tool used in structured methodologies.

---

Definitions:

Fixed Costs

Fixed expenses unaffected by the volume of production or sales, like rent, insurance, and wages.

Sensitivity

In finance, sensitivity indicates how much the value of an investment or project changes in response to changes in underlying variables, such as interest rates or market conditions.

Net Present Value

The financial difference calculated by subtracting cash outflows’ present value from cash inflows’ present value during a set period.

Sales Quantity

The total volume or number of units sold of a product or service within a specified time frame.