Business Planning That Focuses on Short-Term Financial Performance, Including Cash

question 70

Multiple Choice

Business planning that focuses on short-term financial performance, including cash requirements is called:

• A)strategic planning.
• B)operational planning.
• C)budgeting.
• D)forecasting.
• E)this level of detail is included in all of the business planning levels.

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Definitions:

Sales Budget

A financial plan that estimates future sales in terms of units and revenue.

Finished Goods Inventory

Items that have completed the manufacturing process and are ready to be sold to customers.

Specialized Electrical Switches

Electrical switches designed for specific functions or applications, often requiring custom designs or specifications to meet unique operational or safety standards.

Variable Costing

A pricing approach that incorporates solely the variable costs of production—such as direct materials, direct labor, and variable manufacturing overhead—into the cost per unit of products.