Javier and His Team of Engineers Have Gone Through the Blueprint

question 94

Multiple Choice

Javier and his team of engineers have gone through the blueprint of a new commercial complex and have underlined major issues that could crop up when work starts at the site. They have also thought of possible fixes to the issues. This is an example of _____.

• A) benchmarking
• B) operational planning
• C) functional planning
• D) tactical planning
• E) contingency planning

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Definitions:

Break-even Sales

The amount of revenue required to cover both the variable and fixed costs of production, leading to a situation where a business makes neither profit nor loss.

Variable Costs

Costs that vary directly with the level of production output.

Fixed Costs

Costs that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.

Operating Income

The profit realized from a business's core operations, excluding deductions of interest and tax, representing the efficiency of the company's core business.