What alternative approaches can be used to estimate variable consideration?
Q: What is sensitivity analysis? Explain.
A: Financial models refer to the summary or brief of a company's performance, on the basis of the…
Q: How do the Internal-Rate-of-Return Criterion relate to the PW Analysis?
A: Capital budgeting: It is the process in which the business uses to determine which proposed fixed…
Q: Define the term cutoff values?
A: Cut-off values for diagnosis or screening examinations that have constant outcomes (estimated on a…
Q: Discuss the sensitivity of the model to changes in the value of the input variables
A: It is a technique that is used to get the estimates of independent variables by changing the…
Q: Define then discuss Value-at-Risk.
A: The stock market is full of new policies and procedures. It get impacted by change in the government…
Q: What is the significance of the Value at Risk (VaR) method?
A: The question is based on the concept of Value at Risk (VaR). VaR is a statistical measure of risk in…
Q: What are the basic criteria for selecting a forecasting model?
A: The process that is used to anticipate the demand for the product or service of the business is…
Q: How to Estimate the Variable Consideration?
A: Revenue: It is the income generated by the business over their regular business operations.
Q: What are the different variables in sensitivity analysis?
A: Answer: Under a given set of expectations, a sensitivity analysis describes the way different values…
Q: Describe the method for conducting sensitivity analysis for mutually exclusive alternatives?
A: Sensitivity analysis is a financial model that decides how target factors are influenced by changes…
Q: What are Required Assumptions and Decision Frameworks for replacement analysis?
A: Replacement analysis: It is an analysis tool in capital budgeting decisions. An asset life tends…
Q: Define the term predictive value.
A: Predictive value refers to the fact that quality financial information can be used to base…
Q: Explain the Sensitivity Analysis?
A: The sensitivity analysis is utilized to comprehend the impact of a lot of autonomous factors on some…
Q: ffective rate?
A: The given problem can be solved using EFFECT function in excel. EFFECT function computes effective…
Q: What is the meaningful total variance for performance evaluation purposes?
A: Flexible budget: A flexible budget is a budget prepared by the company for effective evaluation of…
Q: Define variable consideration.
A: Variable considerations: Contracts having a degree of variability in the specified transaction…
Q: What is the Internal-Rate-of-Return Criterion?
A: Internal rate of return (IRR): The internal rate of return (IRR) is a measure utilized in capital…
Q: Describe how to estimate variable consideration.
A: Revenue: It is the income generated by the business over their regular business operations.
Q: When using the high-low method, should you base the high and low observations on the dependent…
A: Cost Function:Cost function represents the basic change comes in the total cost due to the change in…
Q: What is net present value (NPV) profile?
A: Net present value profile is mainly the graphical representation of net present value of different…
Q: How is benchmarking beneficial?
A: Benchmarking is a measure which determines a company's competitive position through comparing its…
Q: What is residual value? Support your answer with an example
A: Residual value is also called as salvage value
Q: How is the ERC (efficient response coefficient) determined and which role analyst forecasts play in…
A: The earnings response coefficient, or ERC, is a calculated ratio between stock returns and the…
Q: Differentiate between sensitivity analysis and scenario analysis.What advantage does scenario…
A: Differentiate between sensitivity analysis and scenario analysis: Scenario analysis involves…
Q: Sensitivity analysis is the analysis of the effect of parameter changes on the optimal solution.…
A: Sensitivity analysis is done to understand changes in a target variable when changes are made in…
Q: When we perform sensitivity analysis for mutually exclusive alternatives, itmay be more effective to…
A: Net present worth is acknowledged as the current worth or value of a project which is adjusted as…
Q: How to estimate the Residual Value?
A: Residual value means value of fixed asset left after the use of fixed assets. Residual value also…
Q: Does the Analysis Period differ from Project Lives? Explain how?
A: In a financial term, the Analysis Period is a period of financial analysis of financial statements…
Q: What is the difference between positive and negative predictive value?
A: Positive predictive value is the probability that subjects with a positive screening test truly have…
Q: Which investment return, expected or actual, does GAAP allow in the calculation of benefit cost?
A: Benefit cost: When an entity creates a benefit plan setting aside some moneys to meet future…
Q: Explain Measures of Variance and Risk?
A: Variance tests normal or normal variability. Variability is volatility for investors, and volatility…
Q: What are some strengths and weaknesses of sensitivity analysis and scenario analysis?
A: Sensitivity Analysis determines how the dependent variable changes when the independent variable…
Q: What are some examples of variable consideration? What are the two approaches for estimating…
A: Variable consideration: It is an amount which is included in the contract as consideration. An…
Q: How do you find the standard quantity for efficiency variance?
A: Management should pay particular attention to those that are uncommon or noteworthy. Firms may…
Q: Describe the procedure to compute the variance of return for a project?
A: Variance is ascertained as follows: The mean worth is dictated by including all the information…
Q: When we work with the breakeven point, how important is it to understand what a decision variable…
A: The question is related to Marginal Costing. The break-even point is that level of sales at which…
Q: are return on investment, residual income, and EVA qualitative components?
A: Qualitative components refer to the intangible effect of the events and transactions of business…
Q: What is the replacement analysis?
A: Replacement analysis is one of the keys examinations in capital budgeting.
Q: What is Modified Internal Rate of Return (MIRR) method?
A: Internal rate of return (IRR): The internal rate of return (IRR) is a measure utilized in capital…
Q: How can we Consider Project Risk by Discount Rate?
A: In corporate finance, a discount rate is the rate of return used to discount future cash flows back…
Q: How is the process of the NPW measure implemented with the decision rule?
A: As an organization expands, it needs to take important decisions that involve immense capital…
Q: What is a sensitivity analysis?
A: Sensitivity analysis:Sensitivity analysis ascertains the manner in which the different values of an…
Q: Define the term Sensitivity Analysis?
A: Sensitivity analysis is a financial modelling tool which aims to analyze the change in output…
What alternative approaches can be used to estimate variable consideration?
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