Managerial Accounting QuizStrategic Planning quiz 06/06/2026 1 min read Strategic Planning 10 questions in 10 minutes Pass Score 70% 1 / 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 Strong organizational culture Strict unity of command 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 2 / 10 Which of the following cycles doesnothave accounting information recorded into the general ledger reporting system ? Revenue Production Expenditure Planning 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 Strategic planning, as practiced by most modern organizations, includes all of the followingexcept : A long-term focus Top-level management participation Strategies that will help in achieving long-range goals Analysis of the current month’s actual variances from budget 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 4 / 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 : Compensation should be based on qualitative factors Employees should be concerned with routine matters, and managers should attend to exceptions Managers should establish objectives for their employees 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 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 A policy A mission statement 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 6 / 10 Which of the following is an example of an outcome of strategic planning ? A document specifying a sequence of steps detailing the exact manner in which a certain activity must be accomplished 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 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 7 / 10 MBO managers aremostlikely to believe that employees : Are self-motivated Work best when threatened with punishment Avoid responsibility whenever possible Dislike their work 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 8 / 10 Strategy is a broad term that usually means the selection of overall objectives. Strategic analysis ordinarilyexcludesthe : Trends that will affect the entity’s markets 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 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 9 / 10 A distinction between forecasting and planning : Is that forecasting is a management activity whereas planning is a technical activity 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 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 . 10 / 10 All of the following are characteristics of the strategic planning processexceptthe : Emphasis on long run Analysis of external economic factors Analysis and review of departmental budgets Review of the attributes and behavior of the organization’s competition 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 Your score is LinkedIn Facebook Twitter VKontakte 0% Send feedback 🚀 Join Telegram Group 📢 Telegram Channel 📘 Facebook Group 👍 Facebook Page 📌 Pinterest
