Business Planning That Focuses on the Next Year and Includes

question 55

Multiple Choice

Business planning that focuses on the next year and includes detailed revenue targets, profit objectives and compensation systems is called:

• A)strategic planning.
• B)operational planning.
• C)budgeting.
• D)forecasting.
• E)this level of detail is included in all of the business planning levels.

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Definitions:

Sales Returns and Allowances

Transactions in which customers return damaged or unsatisfactory products for refunds or credit, and adjustments made to sales revenue for these returns or granted concessions.

Accounts Receivable

Outstanding payments from customers to a firm for delivered or utilized goods or services awaiting settlement.

Merchandise Return

The process whereby customers return previously purchased merchandise to the seller for a refund, store credit, or exchange.

Selling Expenses

Costs incurred directly and indirectly in selling a product, such as commissions, advertising, and promotional materials.