Which of the Following Is NOT a Reason for Failure

question 38

Multiple Choice

Which of the following is NOT a reason for failure of plans?

• A) Responsibility for planning is wrongly vested solely in the planning department.
• B) Management expects that plans developed will be realized with little effort.
• C) Financial projections are confused with planning.
• D) Adequate inputs are used in the planning.
• E) Management fails to grasp the overall planning process.

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Definitions:

Cost Volume Profit (CVP) Analysis

A financial analysis tool used to determine how changes in costs and volume affect a company's operating income and net income.

Simplified Model

An abstracted representation of a system that captures essential features while ignoring less relevant details to facilitate analysis and decision-making.

Activity-Based Costing

A pricing approach that discerns various tasks within a business and allocates the expenses of each activity to all goods and services based on their real usage.

Breakeven Point

The point at which total costs and total revenues are equal, meaning a business neither makes a profit nor incurs a loss.