Cost Accounting (15th Edition)
Cost Accounting (15th Edition)
15th Edition
ISBN: 9780133428704
Author: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan
Publisher: PEARSON
bartleby

Concept explainers

Question
Book Icon
Chapter 6, Problem 6.10Q
To determine

Sensitivity Analysis:

The sensitivity analysis is a method of analyzing the result of a dependent variable because of the changes in the independent variables in the provided conditions. This analysis reads the change in results if does not meets the predicted value.

To explain: The way in which sensitivity analysis can be used to increase the benefits of budgeting.

Blurred answer
Students have asked these similar questions
How can sensitivity analysis be used to increase the benefits of budgeting?
What is participative budgeting? What are its potential benefits? What are its potential shortcomings?
What are the advantages and disadvantages of the participatory approach to budgeting?
Knowledge Booster
Background pattern image
Accounting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Text book image
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:9781337514835
Author:MOYER
Publisher:CENGAGE LEARNING - CONSIGNMENT
Text book image
Survey of Accounting (Accounting I)
Accounting
ISBN:9781305961883
Author:Carl Warren
Publisher:Cengage Learning
Text book image
Principles of Accounting Volume 2
Accounting
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax College