Planning Is Often Called the Primary Management Function Because It

question 72

Multiple Choice

Planning is often called the primary management function because it ________.

• A) establishes the basis for all the other functions
• B) sets the tone for the organizational culture
• C) creates the vision for the organizational members to work toward
• D) offers some basis for future decision making

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Definitions:

Contribution Margin Ratio

The ratio of Contribution Margin (sales minus variable costs) to sales revenue.

Target Profit

The specific amount of net income that a company aims to achieve within a certain time frame.

Monthly

Pertaining to or occurring every month, often used in the context of reporting, billing, or accounting periods.

Dollar Sales

The total revenue a company generates from sales, measured in dollars, over a specific period.