Strategic Planning quiz Managerial Accounting Quiz On Feb 3, 2026 Share Strategic Planning 10 questions in 10 minutes Pass Score 70% 1 / 10 A distinction between forecasting and planning : Is that forecasts are used in planning Arises because forecasting covers the short-term and planning does not Is not valid because they are synonyms Is that forecasting is a management activity whereas planning is a technical activity Planning is the determination of what is to be done, and of how, when, where, and by whom it is to be done. Plans serve to direct the activities that all organizational members must undertake to move the organization from where it is to where it wants to be. Forecasting is the basis of planning because it projects the future. A variety of quantitative methods are used in forecasting . 2 / 10 Strategy is a broad term that usually means the selection of overall objectives. Strategic analysis ordinarily excludes the : Forms of organizational structure that would best serve the entity Trends that will affect the entity’s markets Target product mix and production schedule to be maintained during the year Best ways to invest in research, design, production, distribution, marketing, and administrative activities Strategic analysis is the process of long-range planning. Such tasks as setting the target product mix and production schedule for the current year are short-term activities 3 / 10 All of the following are characteristics of the strategic planning process except the : Review of the attributes and behavior of the organization’s competition Emphasis on long run Analysis and review of departmental budgets Analysis of external economic factors Strategic planning is the process of setting the overall organizational objectives and involves the drafting of strategic plans. Analysis and review of departmental budgets is an aspect of operational management 4 / 10 An organization’s policies and procedures are part of its overall system of internal controls. The control function performed by policies and procedures is : Feedforward control Feedback control Application control Implementation control Feedforward control anticipates and prevents problems. Policies and procedures serve as feedforward controls because they provide guidance on how an activity should be performed to best ensure that an objective is achieved 5 / 10 The management of an organization has stated that two members of the same family may not be employed in the same department. Identify the component of organizational planning that is being demonstrated by management’s action. A strategy An objective A mission statement A policy Top management establishes policies as guides to middle- and lower-management decision making. Policies are relatively broad guidelines for making routine decisions consistent with overall objectives. They channel thinking in a certain direction but allow for some managerial discretion 6 / 10 Formal written policies are normally recommended. However, the presence of certain conditions in an organization minimizes the need for written policies. One condition that minimizes the need for written policies is a Strict unity of command High division of labor Strong organizational culture Large span of control If the culture is strong, the organization’s key values are intensely held and widely shared. Substantial training has been expended to achieve this high degree of acceptance, minimizing the need for formal, written policies 7 / 10 A company has a compensation system for its managers based on a management-by-objectives (MBO) approach. The essential premise of MBO is that : Employees should be concerned with routine matters, and managers should attend to exceptions Managers should establish objectives for their employees Compensation should be based on qualitative factors Employees should participate in setting objectives The hallmark of MBO is the mutual setting of objectives by the superior and the subordinate as a basis for performance evaluation 8 / 10 Which one of the following management considerations is usually addressed first in strategic planning ? Outsourcing Organizational structure Recent annual budgets Overall objectives of the firm Strategic planning is the process of setting overall organizational objectives and drafting strategic plans. Setting ultimate objectives for the firm is a necessary prelude to developing strategies for achieving those objectives. Plans and budgets are then needed to implement those strategies . 9 / 10 Which of the following is an example of an outcome of strategic planning ? A set of general guides for action that channel thinking and allow a certain amount of discretion in execution A formal statement of the organization’s definition of the fundamental truths that guide its actions A broad statement of concepts that emphasizes the implementation of organizational objectives over the long term A document specifying a sequence of steps detailing the exact manner in which a certain activity must be accomplished The strategic plan states the means by which an entity expects to achieve its stated mission. Achieving the mission is predicated on implementing long-term objectives 10 / 10 Which of the following cycles does not have accounting information recorded into the general ledger reporting system ? Planning Revenue Production Expenditure Planning is the determination of what is to be done and of how, when, where, and by whom it is to be done. Plans serve to direct the activities that all organizational members must undertake and successfully perform to move the organization from where it is to where it wants to be. No transactions that require recording in the general ledger take place during the planning cycle. Purchasing, receiving, cash payments, and other transactions in the expenditure cycle are recorded in the general ledger. Accounting for costs, deferred costs, and property involved in the production or conversion of goods or services are recorded in the general ledger. Sales, receivables, cash receipts, bad debts, and other transactions in the revenue cycle are recorded in the general ledger. Your score is LinkedIn Facebook Twitter VKontakte 0% Send feedback business strategic planningit strategic planningsteps in strategic planning
