Which of the Following Is NOT One of the Steps

question 30

Multiple Choice

Which of the following is NOT one of the steps taken in the financial planning process?

• A) Assumptions are made about future levels of sales,costs,and interest rates for use in the forecast.
• B) The entire financial plan is reexamined,assumptions are reviewed,and the management team considers how additional changes in operations might improve results.
• C) Projected ratios are calculated and analyzed.
• D) Develop a set of projected financial statements.
• E) Consult with key competitors about the optimal set of prices to charge,i.e. ,the prices that will maximize profits for our firm and its competitors.

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Definitions:

Production Lead Time

The total time required to manufacture an item, including order preparation, queue, setup, run, inspection, and put-away time.

Supply-Chain Management

The management of the flow of goods and services, involving the movement and storage of raw materials, of work-in-process inventory, and of finished goods from point of origin to point of consumption.

Service Firms

Companies that provide intangible products or services to customers.

Vertical Integration

A strategy where a company expands its operations by moving into a different level of the supply chain, usually by acquiring or establishing its own suppliers or distributors.