Asked by Santiago Quirós on Jun 11, 2024
Verified
The best case scenario analysis is based on the _____ expected sales quantity, the _____ expected sales price, and the _____ expected costs per unit.
A) Highest; highest; highest.
B) Highest; highest; lowest.
C) Highest; lowest; lowest.
D) Lowest; lowest; highest.
E) Lowest; lowest; lowest.
Scenario Analysis
A method of examining potential future scenarios by evaluating different possible results.
Sales Quantity
The total number of units of a product sold in a particular period of time.
Costs Per Unit
The total expense incurred to produce, store, and sell one unit of a product, including direct and indirect costs.
- Understand the role and evaluation of scenario analysis in project management.
Verified Answer
CR
Chanakya Ram PrasadJun 17, 2024
Final Answer :
B
Explanation :
The best case scenario analysis assumes the most favorable conditions for the business, which would be the highest expected sales quantity, the highest expected sales price, and the lowest expected costs per unit. This combination would yield the most optimistic outcome in terms of profit.
Learning Objectives
- Understand the role and evaluation of scenario analysis in project management.
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