In reporting and decision support, which type of report helps management answer what-if questions by projecting outcomes under assumed scenarios?

Introduction / Context:
Decision makers frequently explore hypothetical situations: “What if demand rises 10%?”, “What if prices drop?”, “What if lead times double?” Reports that support such analyses are central to planning, budgeting, and risk management.

Given Data / Assumptions:

• Management needs forward-looking insight, not only historical summaries.
• Reports should vary inputs and show projected outcomes.
• Terminology distinguishes types of reports by purpose.

Concept / Approach:
Predictive reports and related scenario analyses model outcomes based on assumed drivers (volumes, prices, costs, capacities). They enable what-if analysis by recalculating results when managers change parameters, often implemented via spreadsheets, planning systems, or BI tools with simulation features.

Step-by-Step Solution:

Verification / Alternative check:
FP&A practices use scenario and sensitivity analysis—classic predictive reporting—to support planning and budgeting.

Why Other Options Are Wrong:

• Relevant: A quality, not a report type.
• Management by exception: A control principle, not a predictive technique.
• Control: A function, not a report category.
• None: Incorrect; predictive reports fit precisely.

Common Pitfalls:
Confusing variance (historical) analysis with predictive (forward-looking) analysis; forgetting to document assumptions behind scenarios.

Final Answer:
predictive reports