Accounting Multiple Choice Question – 22 January 2021

For what purpose might management undertake sensitivity analysis?

Select ONE answer:

1. to calculate employees’ bonuses
2. to determine levels of depreciation
3. to determine the effect of dividends on profit
4. to determine the selling price of a product

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct

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