When Preparing Financial Projections for a Business Plan,be ______ in Your

question 65

Multiple Choice

When preparing financial projections for a business plan,be ______ in your estimates.

• A)bullish
• B)neutral
• C)conservative
• D)realistic

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Definitions:

Variable Manufacturing Costs

Charges that fluctuate based on the volume of production, like components used in product assembly and wages for workers on the production line.

Variable Selling Expenses

Selling costs that fluctuate with sales volume, such as commissions for sales staff.

Break-Even Sales

The amount of revenue required to cover all fixed and variable expenses, resulting in zero profit.

Variable Expenses

Expenses that vary directly with the level of production or sales, such as raw materials and direct labor costs.