![]() You can specify the desired result to be produced, and then ascertain what sets of values will produce that result. Moreover, you can use What-If Analysis to build multiple budgets that make an assumption of different revenue total. To achieve the desired result (turnover) you need to know the input factors, like how much to produce, how much to spend on advertising and many more. In case you wish you achieve a certain level of turnover. To resolve this issue, you can use Scenarios. You do not like the idea as you believe it might affect the profit margins. Let’s say you and your partner are in an argument whether to increase the advertising expense which could boost the sales. It saves time and makes your work easier. output value and determines the possible input values. On the other hand, Goal Seek is a reverse process. Scenarios and Data tables take the input values to determine possible results. There are three kinds of What-If Analysis tools in Excel: Scenario Manager, Goal Seek, and Data Tables. What-If Analysis is the process of changing multiple sets of data values to how those changes affect the outcome. ![]() It helps in building scenarios and then compare them or set a goal and ascertain the desired inputs to achieve the goal. Excel provides assistance with a pretty cool tool, namely What if Analysis to help analyze the so-called What-If situation. From individuals to big conglomerates everyone wonders on a question with What if? Big giants deal with what if I had produced more, Individuals deal with What if I had done better.
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