ENTREPRENEURIAL OPERATIONS
INVENTORY MANAGEMENT
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
True
|
|
|
False
|
|
|
Either A or B
|
|
|
None of the above
|
Detailed explanation-1: -Examples of Profit Planning Increase the investment in new product development in order to increase new product sales. Expand the regions within which existing products are sold. Target areas of declining sales where it can make the most sense to eliminate products or cut costs.
Detailed explanation-2: -Profit planning aims to set a profit objective for a budgeting period. Also, it seeks to establish the main policy decisions regarding how to achieve the objectives. The profit objective will normally be related to the return required on the investment in the business.
Detailed explanation-3: -Profit planning is important for all businesses By setting financial goals and putting them into action, you’re much more likely to achieve the business profit that you’ve planned for. Profit planning should always be part of any master budget that you create for your business.