In the control phase of the financial planning process, projected financial statements must be evaluated to determine:
A)the firm's operating breakeven at different sales levels.
B)whether economies of scale have been achieved.
C)the level of leverage the firm can attain with its forecasts.
D)whether the forecasts meet the firm's financial targets.
E)the amount of internal funds the firm must raise to meet its financial goals.

Question

Quizplus · Accepted Answer

In the control phase, the projected financial statements are compared to the firm's financial targets to determine whether the forecasts meet those targets. This helps the firm to identify areas in which it is performing well and areas in which it needs to improve. Options A, B, C, and E may be evaluated during the planning phase of financial planning process.

In the Control Phase of the Financial Planning Process, Projected