10 Market Analysis

Goal Seek

A scenario tool that maximizes Excel’s cell-referencing capabilities and enables you to find the input values needed to achieve a goal or objective.

One-variable data table

A table that can help you analyze how different values of one variable in one or more formulas will change the results of those formulas.

Break-even analysis

Used to calculate the break-even point in sales volume or dollars, estimate profit or loss at any level of sales volume, and help in setting prices.

Break-even point

The sales level at which revenue equals total costs

there is neither a profit nor a loss.

Cost-volume-profit analysis

(CVP) The study of how cost and sales volume are related and the effect their relationship has on profit.

Two-variable data table

A table that can help you to analyze how changing the value of two variables affects the results of a formula.

Data table

A what-if analysis tool that takes sets of input values, determines possible results, and displays all the results in one table on one worksheet.

Scenario tool

A tool that enables a user to calculate numerous outputs in other cells by referencing the target cell in formulas and functions.

Inelastic

Not responsive to change

a large change in price is accompanied by a small amount of change in demand.

What-if analysis

An analysis that changes values in a spreadsheet to explore all the various results.

Mixed costs

A cost that contains a variable component and a fixed component.

Elastic

Responsive to change

a small change in price is accompanied by a large change in the quantity demanded.

Variable costs

A cost that changes on the basis of how many products are sold or services are rendered.

Objective cell

A cell that contains the formula that creates a value that you want to optimize: maximize, minimize, or set to a specific value.

Fixed costs

An expense that never changes regardless of how much product is sold or how many services are rendered.

Variable

A value stored in a cell and used in a formula or function that can be changed to see how the change affects other values.

Iteration

A process that repeatedly enters new values in the variable cell or cells to find a solution to a problem.

Optimize

To find the best way to do something.

Scroll bar

A form control used in what-if analyses that allows you to change a number in a target cell location in single-unit increments.

Scenario

Allows you to build a what-if analysis model that includes variable cells linked by one or more formulas or functions.

Changing cells

The cell or cells used to identify the various data cells whose values can differ in each scenario.

Add-in

An application with specific functionality geared toward accomplishing a specific goal (relevant because some what-if tools require these)