Profit Planning

Profit Planning

Assessment

Interactive Video

Business

University

Hard

Created by

Quizizz Content

FREE Resource

The video tutorial covers profit planning, which involves creating operational budgets and allocating resources to achieve target profit levels. It discusses the importance of identifying necessary activities, resources, and associated costs. The tutorial explains the use of simulations and sensitivity analysis to evaluate the impact of resource allocation on activities. It also covers break-even analysis and how to determine the desired profit level by adjusting variables. Finally, it emphasizes the need for activity analysis to assess the profitability and necessity of each activity in the profit planning process.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the primary goal when creating multiple operational budgets?

To eliminate fixed costs

To minimize resource allocation

To reduce the number of activities

To achieve a target profit level

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the purpose of conducting 'what if' analysis in profit planning?

To determine the effect of resource allocation on activity levels

To identify the fixed costs

To eliminate unnecessary activities

To calculate the total revenue

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

At what point do you reach break-even in terms of costs?

When variable costs are minimized

When variable costs exceed fixed costs

When total revenue equals total costs

When fixed costs are zero

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How can you determine the number of units to sell to achieve a desired profit level?

By increasing variable costs

By using the break-even formula with adjustments

By eliminating non-essential activities

By reducing fixed costs

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the purpose of activity analysis in profit planning?

To reduce the number of units sold

To assess the profitability of each activity

To increase the number of activities

To increase fixed costs