Which One of the Following Is the Fundamental Purpose of Planning

question 63

Multiple Choice

Which one of the following is the fundamental purpose of planning?

• A)eliminating risk
• B)helping the organization reach its objectives
• C)optimizing the use of resources
• D)identifying organizational objectives
• E)organizing work processes

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Definitions:

Cost Generation

Relates to the creation or incurrence of costs or expenses in the production of goods or services.

Controllable Margin

The portion of profit or margin that can be influenced by managing operating costs and expenses.

Operating Data

Information related to the day-to-day functions and performance of a business, used for analysis and decision making.

Contribution Margin

The difference between a company's sales revenue and its variable costs.