Sensitivity Analysis is an important Strategic Investment Decisions. Explain. Remember to state the other Strategic Investment Decisions.
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What Is Sensitivity Analysis? There are many different ways decision makers can try to predict the future outcomes of their... View the full answer
- The most crucial factors that influence the master budget prparation and the sensitivity analysis are described below; 1. Sales Price and Sales Volume : The most crucial and most influential starting point of a master budget. The effect of Slaes price on demand and the forecast sales volume influence the master budget the most and are the most crucial parameters on which the entire master budget calculation and sensitivity analysis depends. 2. Cost of Goods produced: The estimate of cost of goods produced is another crucial factor in master budget and sensitivity analysis. Any change in cost of inputs due to inflation or exchange rate variation affect the master budget and sensitivity analysis. 3. Production capacity and Capital investment : The estimation od capacity utlization affects the decisions regarding the capital investment required and the manpower requirement. These factors influence the budget for capital expenditure and operating expense budgets like salaries and wages , employee benefits , retirement benefits etc.
- Jul 20, 2016 at 1:31am
heck out here Sensitivity Analysis is an important Strategic Investment Decisions and this is depicted by the following ... View the full answer
answer Sensitivity Analysis is an important Strategic Investment Decisions. It is a technique used to determine how... View the full answer