Explore BrainMass

Explore BrainMass

    Importance of assumptions in financial planning

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Why is it important that physical assumptions precede financial results in the planning process? For example, what's wrong with assuming you want a business that sells $ 50 million a year earning a profit of $ 5 million, and then building a revenue and cost plan to fit those goals?

    © BrainMass Inc. brainmass.com October 2, 2020, 5:43 am ad1c9bdddf

    Solution Preview

    Valid assumptions are important to formulate realistic financial goals ...

    Solution Summary

    The solution discusses the importance of assumptions in the financial planning process.