Managerial Accounting QuizStrategic Planning quiz 06/05/2026 1 min read Strategic Planning 10 questions in 10 minutes Pass Score 70% 1 / 10 MBO managers aremostlikely to believe that employees : Are self-motivated Dislike their work Work best when threatened with punishment Avoid responsibility whenever possible 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 2 / 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 3 / 10 Which one of the following management considerations is usually addressed first in strategic planning ? Outsourcing Recent annual budgets Organizational structure 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 . 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 Which of the following is an example of an outcome of strategic planning ? 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 A set of general guides for action that channel thinking and allow a certain amount of discretion in execution 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 6 / 10 A distinction between forecasting and planning : Is not valid because they are synonyms Is that forecasting is a management activity whereas planning is a technical activity Is that forecasts are used in planning Arises because forecasting covers the short-term and planning does not 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 . 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 : Feedforward control Implementation control Feedback control Application 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 Which of the following cycles doesnothave accounting information recorded into the general ledger reporting system ? Expenditure Revenue Planning Production 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. 9 / 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 10 / 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 Target product mix and production schedule to be maintained during the year Forms of organizational structure that would best serve the entity 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 Your score is LinkedIn Facebook Twitter VKontakte 0% Send feedback 🚀 Join Telegram Group 📢 Telegram Channel 📘 Facebook Group 👍 Facebook Page 📌 Pinterest
