GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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projected sales of the company
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past profit record
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present profit record
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all the above
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Detailed explanation-1: -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-2: -The goal of profit planning is to set a profit objective for a budgeting period. The actual process of profit planning involves making certain management decisions beforehand in order to help your firm earn more profit.
Detailed explanation-3: -Examples of Profit Planning For example: 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-4: -Budgeting, cost control, and contribution analyses are the key elements in controlling a profit plan.