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Questions and Answers
What is necessary for effective planning?
What is necessary for effective planning?
- Historical run-rates
- Dynamic forecasting and "what-if" modeling (correct)
- Rigid adherence to plans
- Reactive decision-making
What provides a trended view of performance?
What provides a trended view of performance?
- Historical run-rates
- Multi-year planning
- Detailed budgets
- Rolling forecasts (correct)
What helps understand the impact of external market business drivers and internal initiatives?
What helps understand the impact of external market business drivers and internal initiatives?
- Detailed budgets
- Multi-year planning (correct)
- Reactive decision-making
- Rigid adherence to plans
What gives managers visibility into financial plans?
What gives managers visibility into financial plans?
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What is imperative for effective planning?
What is imperative for effective planning?
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Study Notes
- Planning across multiple time horizons is important.
- Historical run-rates are not reliable for future performance.
- Dynamic forecasting and "what-if" modeling are necessary.
- Aligning plans, models, and budgets is imperative.
- Rolling forecasts provide a trended view of performance.
- Multi-year planning helps understand the impact of external market business drivers and internal initiatives.
- Detailed budgets give managers visibility into financial plans.
- Refinements are made collaboratively with each department.
- All plans must be kept in sync using the same assumptions.
- This supports informed decisions.
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Description
Learn about the importance of planning across multiple time horizons, dynamic forecasting, aligning plans with budgets, rolling forecasts, multi-year planning, and collaborative refinements for informed decision-making.
