Leaving Certificate Accounting Theory Practice Test 2026 – Your All-In-One Guide to Exam Success!

Sensitivity analysis, also known as what-if analysis, looks at how profit changes when you vary the main drivers of profit. Profit is revenue minus costs, so it can be influenced by selling price and sales volume (which affect revenue) as well as variable costs and fixed costs (which affect total costs). By examining how profit responds to changes in all four factors, you get the full picture of potential outcomes. Therefore the description that includes changes in selling price, sales volume, variable costs and fixed costs is the best fit, because it covers every lever that can impact profitability.