Operational Planning

question 66

Multiple Choice

Operational planning:

• A) should be used to establish the fundamental strategies of the organization.
• B) is used to determine departmental rules and procedures.
• C) is the primary responsibility of the top management.
• D) should be completed at the same time the total budget is prepared.

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Definitions:

Economic Profit

The difference between the total revenue earned by a business and the total opportunity costs of all resources used in the production.

Competitive Firms

Companies that operate in a market where there are many buyers and sellers participating with minimal restrictions, leading to competitive prices and product offerings.

Total Costs

The sum of all costs incurred by a business in the production of goods or services, including both fixed and variable costs.

Total Revenues

The total amount of money generated by a firm or entity from its business activities, before any expenses are subtracted.