Strategic Plans Ideally Set Forth the Goals and Objectives Needed

question 46

True/False

Strategic plans ideally set forth the goals and objectives needed to accomplish the organization's vision in terms of mission or purpose and what it hopes to be in the future.

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Definitions:

Contribution Margin

The amount remaining from sales revenue after variable expenses have been deducted; indicates the contribution towards covering fixed expenses and generating profit.

Net Income

The income a company retains after deducting all costs, taxes, and expenses from its total revenue.

Discretionary Fixed Costs

Discretionary fixed costs are fixed expenses that can be adjusted or eliminated without directly impacting the short-term productivity of the business, such as advertising or research and development costs.

High-Low Method

An accounting technique used to estimate the variable and fixed components of a company's costs, based on the highest and lowest levels of activity.