The Planning Process of "Predicting What Will Happen in the Future

question 21

Multiple Choice

The planning process of "predicting what will happen in the future" is called:

• A) contingency planning.
• B) scenario planning.
• C) forecasting.
• D) zero-based budgeting.

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Definitions:

Income From Operations

This refers to the profit realized from a business's ongoing core business operations, excluding deductions of interest and taxes.

Periodic Inventory Method

An accounting method where the inventory is physically counted and valued at the end of a specific period to determine cost of goods sold and ending inventory.

Cost of Goods Sold

The total cost directly associated with producing or purchasing the goods sold by a business during a specific period, including materials and labor.

Selling Expense

Expenses directly related to the selling of products or services, such as advertising, sales commissions, and retail store expenses.