Question

Which feature correctly describes objectives?

Options

• They show estimated cash inflows and outflows over a period

• They are intended only for insiders

• They allow no discretion and must not be changed

• They are expressed as specific, measurable written statements for a given time period

Answer 1

Objectives are mostly set by top management and are specific and measurable written statements. They are stated for a given time period and represent the end point of planning.