Planning Gap Refers to

question 117

Multiple Choice

planning gap refers to

• A) the difference between projected total costs and realized total revenues.
• B) the difference between projected total costs and net profits.
• C) the difference between marginal revenue and marginal cost.
• D) the percentage point difference between a firm and its next largest competitor in terms of market share.
• E) the difference between the projection of the path to reach a new goal and the projection of the path of the results of a plan already in place.

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Definitions:

Depreciation Expense

Systematically dividing the cost of a tangible asset over its estimated useful life.

Impairment Losses

Monetary losses identified when the book value of an asset is higher than its salvageable value.

Fair Value

An estimate of the price at which an asset or liability could be traded in a fair transaction between willing parties.