The Management of Computer Rescues, Inc

question 72

Multiple Choice

The management of Computer Rescues, Inc. finalized the company's action plan for increasing its market share over the next few years. The management then set up a 12-month plan that defines how the organization will conduct its business based on the action plan, including clear sales targets for each week. The second plan is an example of a(n) ________ plan.

• A) dependent
• B) strategic
• C) operating
• D) facilities
• E) typical

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Definitions:

Raw Material Purchases

The acquisition of basic materials that are either consumed in the production process or included as part of the finished goods.

Expected Cash Collections

The projected amount of money a company anticipates receiving from customers over a specific period, based on sales and credit terms.

Budgeted Sales

The projected amount of sales revenue a company expects to achieve during a specific period, often part of financial planning.

Budgeted Raw Material Purchases

The estimated amount a company plans to spend on raw materials for production over a specific period.