What is the purpose of using financial planning models in sensitivity analysis?
What will be an ideal response?
Managers use financial planning models to conduct what-if (sensitivity) analysis to evaluate and respond to risks of failing to achieve the master budget as a result of changes in the original predicted date or underlying assumptions.
Business
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The customer demand for fair value (which will remain constant into the future) makes earning immediate profits critical for companies to be successful
Indicate whether the statement is true or false
Business
Dividend changes may be used by management as a credible communication tool to signal
investors about future earnings under which of the following dividend policy theories? A) the expectations theory B) the information effect C) the residual dividend theory D) the clientele effect
Business