When Implementing Agreed-Upon Recommendations in the SOA, the Financial Planner

question 27

Multiple Choice

When implementing agreed-upon recommendations in the SOA, the financial planner:

• A) must obtain the signature and consent of the client prior to implementation.
• B) must ensure the client fully understands the contents of the SOA and that the implementation of the recommendations are in the clients and planners shared interests.
• C) both a and b.
• D) is unlikely at this point to indicate clearly the responsibilities of each party or a time line for implementation.

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Definitions:

Revenue and Spending Variances

involves analyzing the differences between budgeted and actual figures for revenue and expenditures, helping businesses understand financial performance.

Planning Budget

A budget created for a specific level of activity, used as a tool for decision making and planning within an organization.

Supplies Cost

The amount spent on materials and goods required for the operation of a business that are not directly included in the final product.

Spending Variance

The difference between the actual and budgeted spending. It is used in budgetary control to identify discrepancies and manage costs.