Escription of Assessment Task:Business report
One of the most useful analyses that can be provided to decision-makers in this context is some sort of sensitivity analysis. How robust are your conclusions? Would, for example, the recommendation be different if sales were (say) 10 per cent more or 10 per cent less, or fixed costs (say) 5 per cent more or 5 per cent less? What might be the effect of a greater than predicted increase in material or labour costs? If you have built your spreadsheet model carefully, it should be reasonably easy to make a few of these a?what if?a? changes to model the effect of possible differences in predicted input data, and establish which if any are critical to the viability or otherwise of the venture.