A _____ Is a Type of Operational Plan That Saves

question 16

Multiple Choice

A _____ is a type of operational plan that saves managers' time because once the plan is created, it can be used repeatedly to handle frequently recurring events.

• A) standing plan
• B) budget plan
• C) single-use plan
• D) tactical plan

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Definitions:

Soft Rationing

Internal limitations set by a company on the amount of funds allocated for new investments or projects.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, demonstrating the proportion of fixed versus variable costs a company has.

Fixed Costs

Expenses that remain constant regardless of how much is produced or sold, including rent, salaries, and insurance costs.

Accounting Break-Even

The point where total sales equal total expenses, and the company makes no profit but also incurs no loss.