Which of the following is true of profit planning?
A) Profit planning completely eliminates the risk of failure of businesses.
B) Typically, determining the volume of sales revenue is not required for profit planning.
C) Profit planning must precede other planning activities.
D) The profit goal need not be a specific target value.

Question

Quizplus · Accepted Answer

Profit planning must precede other planning activities, as it provides a basis for setting other goals and objectives. Option A is incorrect because profit planning cannot completely eliminate the risk of failure. Option B is incorrect as determining the volume of sales revenue is a crucial aspect of profit planning. Option D is incorrect as the profit goal should be a specific target value for effective profit planning.

Which of the Following Is True of Profit Planning