Strategic Planning quiz Managerial Accounting Quiz On Apr 5, 2026 Share Strategic Planning 10 questions in 10 minutes Pass Score 70% 1 / 10 All of the following are characteristics of the strategic planning process except the : Analysis of external economic factors Emphasis on long run Review of the attributes and behavior of the organization’s competition Analysis and review of departmental budgets 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 2 / 10 Which of the following cycles does not have accounting information recorded into the general ledger reporting system ? Production Expenditure Planning Revenue 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. 3 / 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 policy A mission statement A strategy An objective 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 4 / 10 MBO managers are most likely to believe that employees : Work best when threatened with punishment Dislike their work Avoid responsibility whenever possible Are self-motivated MBO managers believe that employees are committed to achieving objectives, working hard to receive the rewards of achievement, and striving for self-actualization. The MBO view is that employees enjoy work, need little supervision, seek responsibility, and are imaginative problem solvers 5 / 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 that forecasting is a management activity whereas planning is a technical activity Is not valid because they are synonyms 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 . 6 / 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 : Managers should establish objectives for their employees Employees should participate in setting objectives Employees should be concerned with routine matters, and managers should attend to exceptions Compensation should be based on qualitative factors The hallmark of MBO is the mutual setting of objectives by the superior and the subordinate as a basis for performance evaluation 7 / 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 High division of labor Large span of control Strict unity of command Strong organizational culture 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 8 / 10 What is strategic planning ? It establishes the budget for the organization It establishes the resources that the plan will require It establishes the general direction of the organization It consists of decisions to use parts of the organization’s resources in specified ways Strategic planning establishes the general direction of an organization. It embodies the concerns of senior management and is based specifically on (1) identifying and specifying organizational objectives; (2) evaluating the organization’s strengths and weaknesses; (3) assessing risk levels; (4) identifying and forecasting the effect of external (environmental) factors relevant to the organization; (5) deriving the best strategy for reaching the objectives, given the organization’s strengths and weaknesses and the relevant future trends; and (6) analyzing and reviewing the capital budgeting process and capacity planning. 9 / 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 Best ways to invest in research, design, production, distribution, marketing, and administrative activities Target product mix and production schedule to be maintained during the year 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 10 / 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 Application control Implementation control Feedback 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 Your score is LinkedIn Facebook Twitter VKontakte 0% Send feedback business strategic planningit strategic planningsteps in strategic planning
