Which of the Following Is True About Long-Range and Short-Range

question 19

Multiple Choice

Which of the following is true about long-range and short-range plans?

• A)There is a lot more permanency to long-term plans today than there was in the past.
• B)Long-term plans are not subject to frequent revisions today.
• C)Long-term plans typically look at least ten years or more into the future.
• D)The time frames of planning are shifting today.
• E)Lower management sets its own context to work on short-term plans.

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Definitions:

Net Income

The sum of a company's income once all costs and taxes are subtracted from its total revenue.

Variable Expenses

Costs that vary in direct proportion to changes in the level of activity or volume of goods produced.

Fixed Expenses

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance premiums, providing stability in financial planning.

Break-Even Point

The production level or sales volume at which total revenues equal total expenses, with no net profit or loss.