Effective Financial Management Involves Careful Planning to Determine the Best

question 142

True/False

Effective financial management involves careful planning to determine the best financial sources and to ensure that projected uses are in keeping with the organization's goals.

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Definitions:

Markdown

A reduction from the original or usual price of an item or service.

Mark-up

A surplus included in the goods' purchase price to compensate for overhead costs and gain, determining the final sales price.

Cost

The cost involved in buying an item or the financial outlay needed to produce a good or service.

Mark-up

The amount added to the cost price of goods to cover overhead and profit, expressed as a percentage of the cost.