The process of applying sales goals to production in order to maximize efficiency is __________.

PRINCIPLES OF FINANCE UNIT 1 FINAL (STUDY GUIDE)

The estimate of future outcomes stemming from a strategic plan is a(n) __________.

a.)economic forecast

b.)sales forecast

c.) financial forecast

d.)AFN forecast

An organization's process for setting its overall direction is _________.

a.)capacity planning

b.)modeling

c.)strategic planning

d.)financial forecasting

The process of applying sales goals to production in order to maximize efficiency is __________.

a.)strategic planning

b.)efficiency planning

c.)capacity planning

d.)financial planning

How are expenses forecasted on a pro forma income statement?

a.)As a percentage of forecasted sales, based on historical data

b.)As a percentage of gross margin

c.)By duplicating actual expenses from the preceding period

d.)By adjusting expenses from the previous period for inflation

Robyn wants to prepare a pro forma income statement for her business.

What must she predict before forecasting her expenses?

a.)Net income

b.)Cost of goods sold

c.)Sales

d.)Taxes