FINANCIAL PLANNING AND CONTROL PROCESS

 is a method of achieving the goal of maximizing shareholders’ wealth

Answer explanation

company’s strategic plan

requires both long and short term financial planning that brings together

forecasts of the company’s sales with financing and investment decision making

Answer explanation

strategic plan

Budgets that manage the information used in strategic plan.

Answer explanation

cash budget and production budget,

Companies use this post-auditing to:

Answer explanation

• Evaluate the performance of management

• Analyse any deviations of actual results from planned results

• Evaluate the planning process to determine just how good it is.

- Analyzes external factor to categorize opportunities and threats

Answer explanation

Strategy

Analyzes internal factor to identify economical or competitive advantages and weakness

Answer explanation

Strategy

When a budget exists without consideration of strategy, it usually begins with the prior year's budget and misses opportunities to change the direction of the firm causing immobility.

• True

• False

When a budget exists without consideration of strategy, it usually begins with the prior year's budget and misses opportunities to change the direction of the firm causing mobility.

• True

• False

- allows for input of ideas from multiple sources within the organization and allows for inputs from diff viewpoints.

Answer explanation

Planning

- may generate new ideas for the org's direction, or it may provide insights into better ways to achieve goals that have already been established.

Answer explanation

Planning process