• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for March and June 2025 exams.
Get your discount code >>

Sensitivity analysis

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Sensitivity analysis

  • This topic has 3 replies, 2 voices, and was last updated 2 weeks ago by LMR1006.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • October 12, 2016 at 10:38 pm #343094
    broadex
    Participant
    • Topics: 6
    • Replies: 0
    • ☆

    I dont understand why in working out the sensitivity of revenue we can not take the = npv/ pv of revenue ie how much a revenue can fall to bring the NPV value to Zero. Instead based on the ACCA speciman paper, revenue sensititvy is = npv /pv of net contribution.

    Given the above, how can one calculate the sensitivity of expenses? ie is it how much cost can rise to bring the NPV to a zero level by simply looking as gross expenses figure or one needs to take into account net contribution???

    October 13, 2016 at 7:36 am #343129
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54664
    • ☆☆☆☆☆

    I explain how to calculate the sensitivity in my free lectures (they are a complete free course for Paper F9 and cover everything needed to be able to pass the exam well).

    If indeed the question asks for the sensitivity of the selling price, then it is NPV / PV of the revenue flows.
    If it asks for the sensitivity of the sales volume then it is NPV / PV of contribution (because as the sales volume changes then both the total revenue and the total variable costs will change).
    If it asked for the sensitivity of the variable cost per unit, then it would be NPV / PV of total variable costs.

    Again, I do suggest that you watch my free lectures on this.

    May 6, 2025 at 12:41 pm #717167
    Mac2025
    Participant
    • Topics: 0
    • Replies: 1
    • ☆

    Sensitivity analysis

    May 6, 2025 at 7:10 pm #717171
    LMR1006
    Keymaster
    • Topics: 4
    • Replies: 1494
    • ☆☆☆☆☆

    What is your question?
    Do you need advice?

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • azubair on PM Chapter 15 Questions Financial Performance Measurement
  • Dileena on Sources of finance – Islamic Finance – ACCA (AFM) lectures
  • amaanalli on Governance – ACCA Strategic Business Leader (SBL)
  • nabeelafatima on Using Information Systems – ACCA Performance Management (PM)
  • John Moffat on Irrecoverable Debts and Allowances Example 3 – ACCA Financial Accounting (FA) lectures

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in