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Paper PM

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Paper PM

  • This topic has 5 replies, 2 voices, and was last updated 2 years ago by John Moffat.
Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
    Posts
  • August 6, 2022 at 7:56 pm #662561
    fizaali
    Participant
    • Topics: 53
    • Replies: 36
    • ☆☆

    Can we be tested on sensitivity analysis in paper PM nowadays?

    August 7, 2022 at 9:30 am #662579
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54684
    • ☆☆☆☆☆

    Yes you can be.

    August 7, 2022 at 11:26 am #662599
    fizaali
    Participant
    • Topics: 53
    • Replies: 36
    • ☆☆

    Can you please explain should we take the profit before interest and tax OR profit after tax for the calculation of sensitivity analysis?

    Is this the correct formula =? PBIT / Any variable item

    The higher the percentage the better it is.

    August 8, 2022 at 8:50 am #662636
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54684
    • ☆☆☆☆☆

    It depends on what you are required to calculate the sensitivity of.

    August 8, 2022 at 4:07 pm #662686
    fizaali
    Participant
    • Topics: 53
    • Replies: 36
    • ☆☆

    Plesse respond to this whether we should take the profit before interest and tax (PBIT) OR profit after tax (net profit) for the calculation of sensitivity analysis?

    Secondly, the higher the % of sensitivity analysis the better it is. (Is this correct too?)

    August 8, 2022 at 7:31 pm #662695
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54684
    • ☆☆☆☆☆

    I did respond – it depends what you are being asked to calculate the sensitivity of.

    It is not really a question of ‘better’ or ‘worse’. However the greater the sensitivity the less worried we are about the uncertainty.

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    Posts
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