The First Step in the Financial Planning Process Is

question 130

Multiple Choice

The first step in the financial planning process is

• A) forecasting financial needs.
• B) preparing financial statements.
• C) developing budgets.
• D) establishing financial control.

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Definitions:

Ending Raw Materials

The inventory value of raw materials available at the end of an accounting period before being used in production.

Ending Inventory

The total value of all inventory a company has in stock at the end of a fiscal period.

Beginning Inventory

The value of a company's inventory at the start of an accounting period; the starting point for determining inventory levels over a period.

Budgeted Purchases

The projected amount of goods or materials a company plans to buy over a certain period to meet its production needs.