Planning Test - 3

Methods are the systematic way of doing routine or repetitive jobs. e.g. method for valuation of stock, method of training etc.

Programmes are a combination of goals, policies, procedures, rules. These are made to get a systematic working in the organisation.  e.g. development of new product, construction of shopping mall etc.

To perdict Cash inflows comes from sales and other revenue generating activities and cash outflows in the form of expenses over a period of time, a type of budget is prepared which is called cash budget.

All the activities are directed towards objectives.  These are the end results of planning.  Objectives define the future state of affairs which the organisation want to realise. Example:

• decrease in rejection by 1%
•  increase in sales by 15%  etc.

Planning only provides a base for analysing future.  Future is uncertain as business environment always keeps on changing. There may be a number of unknown factors that could have not predicted. Thus planning does not give guarantee success.

Objectives are the ends towards which all the activities are directed. Thus planning begins with objectives because all the policies, strategies, procedures etc. are formed to achieve objectives only.  Therefore the first step of planning is setting up the objectives.

Planning is a continuous process. It starts with setting the objectives and then putting them into action. One can ensure the proper implementation of plans with proper monitoring by comparing the actual results with expected. Thus it is the last step of planning process.

Under planning process, we set objectives and decide in advance the appropriate course of action for future. Thus planning bridges gap between present and future position.

It means planning is futuristic.  Managers make predictions for future not for the past. The past is used as basis to make assumptions for future.

All others are the characteristics of planning and correct except this one. This is also not correct.