What is the role of driver cells in implementing a scenario manager with multiple scenarios?

• A. To feed scenario inputs and switch between scenarios.
• B. To measure currency risk.
• C. To record historical data.
• D. To compute taxes.

Answer: (A)

Driver cells are the adjustable inputs that drive the model’s calculations. In a scenario manager with multiple scenarios, the driver cells hold the values that define each scenario, and the manager switches between scenarios by changing those values. Because all downstream calculations reference these cells, updating the driver inputs automatically recalculates outcomes, allowing you to compare outputs like revenue, cash flow, or earnings across scenarios. This approach keeps inputs organized in one place and makes switching between predefined scenarios—such as base, optimistic, and pessimistic—clear and reproducible. The other tasks mentioned—measuring currency risk, recording historical data, or computing taxes—are not the role of driver cells.