Shawn Is Doing Some Budgeting for His New Start-Up Business

question 20

Multiple Choice

Shawn is doing some budgeting for his new start-up business. He has developed a budget in Excel using formulas, as he was taught to do in college. Which of the following statements is true?

• A) If Shawn changes one of his assumptions, Excel will automatically recalculate the budget numbers.
• B) Shawn would use sensitivity analysis to check the impact of changing his price.
• C) Shawn would use roll-up to review his summary numbers.
• D) Shawn would use what-if analysis to check the impact of changing his price and the commission he pays his sales people.
• E) Shawn would use goal-seeking analysis to examine the impact of changing his forecast of units sold.

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Definitions:

Value Analysis

A methodical approach to assessing a product or service to reduce costs without impairing quality or performance, aiming to improve value for the manufacturer and customer.

Customer Benefit Plan

A strategy designed by businesses to outline and communicate the advantages or value a customer will receive from their product or service.

Smart

Typically related to devices or technology, denoting intelligence or connectivity features that allow for more efficient and interactive use.

Targeted Rate

A specific goal or benchmark rate set for performance, financial returns, or other measurable outcomes.