L6M9 practice question 15 of 15
Joy is a Senior Accountant at Big Fish Ltd. The organisation is a manufacturing company that specialises in sporting and camping goods such as tents…
Full set: 83 questionsJoy is a Senior Accountant at Big Fish Ltd. The organisation is a manufacturing company that
specialises in sporting and camping goods such as tents, fishing rods, and archery equipment. These
items are produced using imported raw materials from a variety of suppliers, many of whom are
based in low-cost countries. Joy is assessing the extent to which the organisation may be vulnerable
to cost increases and fluctuating currency values. What is Joy completing?
Correct Answer:
C. Sensitivity Analysis
Explanation
This is a sensitivity analysis—checking how sensitive the organisation is to changes in finance caused by price rises or currency fluctuations. (See p.165)
Keep practicing
Take the free L6M9 practice test
Ten exam-style questions with answers and explanations, plus the exam facts and study guides.
More questions
Other L6M9 practice questions
- Question 1What does a forcefield diagram show?
- Question 2A car manufacturing organisation organises formal, regular meetings with its tier one sup…
- Question 3Zelda is the Head Consultant at Pirate Architects Ltd, which provides services to clients…
- Question 4Who are the four business players in the Value Net? Select ALL that apply.
- Question 5Which of the following principles considers the volume of work undertaken by a given reso…
- Question 6Which of the following is a technique for continuous improvement that employs a full-time…