Managerial Accounting QuizStrategic Planning quiz 06/06/2026 1 min read Strategic Planning 10 questions in 10 minutes Pass Score 70% 1 / 10 Strategic planning, as practiced by most modern organizations, includes all of the followingexcept : Analysis of the current month’s actual variances from budget Strategies that will help in achieving long-range goals Top-level management participation A long-term focus Strategic planning is the process of setting overall organizational objectives. It is a long-term process aimed at determining the future course of the organization. Analysis of the current month’s budget variances is a short-term activity 2 / 10 A distinction between forecasting and planning : Is not valid because they are synonyms Arises because forecasting covers the short-term and planning does not Is that forecasts are used in planning 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 . 3 / 10 Strategy is a broad term that usually means the selection of overall objectives. Strategic analysis ordinarilyexcludesthe : Best ways to invest in research, design, production, distribution, marketing, and administrative activities Forms of organizational structure that would best serve the entity Target product mix and production schedule to be maintained during the year Trends that will affect the entity’s markets 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 4 / 10 Which one of the following management considerations is usually addressed first in strategic planning ? Outsourcing Overall objectives of the firm Recent annual budgets Organizational structure 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 . 5 / 10 All of the following are characteristics of the strategic planning processexceptthe : Review of the attributes and behavior of the organization’s competition Emphasis on long run Analysis of external economic factors 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 6 / 10 What is strategic planning ? It establishes the budget for the organization It establishes the general direction of the organization It consists of decisions to use parts of the organization’s resources in specified ways It establishes the resources that the plan will require 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. 7 / 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 : Implementation control Feedback control Application control Feedforward 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 8 / 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 Strong organizational culture Large span of control High division of labor 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 9 / 10 Which of the following cycles doesnothave accounting information recorded into the general ledger reporting system ? Expenditure Production 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. 10 / 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 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 A formal statement of the organization’s definition of the fundamental truths that guide its actions 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 Your score is LinkedIn Facebook Twitter VKontakte 0% Send feedback 🚀 Join Telegram Group 📢 Telegram Channel 📘 Facebook Group 👍 Facebook Page 📌 Pinterest
