Asked by Boston Bragg on Apr 25, 2024
Verified
One of the best ways to speed up the process of financial analysis and arrive at a good decision is to
A) use estimates of inputs when it appears that finding a very accurate input would take an inordinate amount of time.
B) use estimates backed up by sensitivity analysis when it appears that finding a very accurate input would take an inordinate amount of time.
C) use estimates of inputs except when it appears that finding a very accurate input would take an inordinate amount of time.
D) make sure that every detail is very accurate.
Financial Analysis
The process of evaluating businesses, projects, budgets, and other finance-related entities to determine their performance and suitability.
Sensitivity Analysis
A technique used to determine how different values of an independent variable affect a particular dependent variable under a given set of assumptions.
Estimates of Inputs
Projections or calculations regarding the amount or type of resources (like raw materials, labor, and capital) required to achieve a certain production output.
- Recognize the importance and methods of speeding up financial analysis in supply chain decisions.
Verified Answer
Learning Objectives
- Recognize the importance and methods of speeding up financial analysis in supply chain decisions.
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