Why Is It Important to Monitor and Revise Your Financial

question 81

Multiple Choice

Why is it important to monitor and revise your financial plan from time to time?

• A) Your financial position changes over time as does your personal, job, and family situation.
• B) As you get older you will want to lower your goals.
• C) So that you remember the goals you were striving for.
• D) You may decide enjoying consumption now is more important than saving for retirement years.

---

Definitions:

Product Costs

Costs that are directly incurred in the production of goods, including direct materials, direct labor, and manufacturing overhead.

Direct Materials

Raw materials that are directly traceable to the production of a specific product and are a major component of its cost.

Direct Labor

Wages paid to workers directly involved in the production of goods or services, as opposed to administrative or managerial staff.

Manufacturing Overhead

All the indirect costs associated with producing a product, which may include the cost of utilities, depreciation of manufacturing equipment, and salaries of managerial staff.