Which of the Following Statements Accurately Describe Planning Time Horizons

question 151

Multiple Choice

Which of the following statements accurately describe planning time horizons?

• A) Short-range plans cover one year or less into the future.
• B) Intermediate-range plans cover a time frame of one to two years into the future.
• C) Long-range plans cover a time frame of three or more years into the future.
• D) all of the above
• E) none of the above

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Definitions:

Relevant Range

The spectrum of operations or magnitude within which the premises regarding constant and fluctuating cost dynamics hold true.

Prime Cost

The combined cost of raw materials and labor directly involved in the production of goods.

Product Costs

The costs directly incurred from the manufacturing of products including materials, labor, and overhead.

Financial Reporting

The process of disclosing financial information and statements to management, investors, and the public to portray a company's financial performance and position.