When Composing the Financial Plans and Projections Section of a Business

question 66

Multiple Choice

When composing the financial plans and projections section of a business plan, all of the following should be included except :

• A)income statements and balance sheets
• B)statements of cash flows
• C)past and present dividends per share information
• D)funding needs and sources

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Definitions:

Predetermined Overhead Rate

An estimated rate used to assign overhead costs to products or services, based on a relevant activity base.

Manufacturing Overhead

All manufacturing costs other than direct materials and direct labor, including expenses such as rent, utilities, and equipment depreciation.

Predetermined Overhead Rate

An estimated rate used to allocate indirect costs to products or services, based on a selected activity base such as machine-hours or labor-hours.

Direct Labor-Hours

The overall hours spent by staff directly participating in creating goods.