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Budgeting & planning
Driver-based planning
Planning from the operational quantities that cause revenue and cost — customers, price, headcount, units — rather than growing last year's lines by a percentage.
Owned by: AnalystTest band: Analyst
In practice
Revenue = customers × average price is a driver model. "Last year plus 12%" is not. Drivers make a miss explainable: which quantity was wrong.
The kind of thing the test asks
- Which is a driver-based revenue plan?
More in budgeting & planning
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