The annual operating plan contains mostly numbers and a few words of explanation or description.Select one:TrueFalse
Question
The annual operating plan contains mostly numbers and a few words of explanation or description.
Select one:
- True
- False
Solution
The statement "The annual operating plan contains mostly numbers and a few words of explanation or description" is generally considered to be True.
An annual operating plan (AOP) is primarily a financial document that outlines the budget and performance expectations for an organization over the course of a year. It includes quantitative metrics such as revenue projections, expense estimates, and profitability targets. While these numbers are crucial as they guide decision-making and resource allocation, they are often accompanied by brief descriptions to provide context or clarification on the methodologies used, assumptions made, or strategic initiatives planned.
The numbers serve as a backbone for the plan, while the explanations help stakeholders understand how these figures align with the organization's broader goals and objectives. Thus, the emphasis on numerical data over extensive text descriptions is consistent with the nature of an annual operating plan.
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