Strategic Planning quiz Managerial Accounting Quiz Share Strategic Planning 10 questions in 10 minutes Pass Score 70% 1 / 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 Employees should participate in setting objectives 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 2 / 10 MBO managers aremostlikely to believe that employees : Dislike their work Work best when threatened with punishment 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 3 / 10 Which one of the following management considerations is usually addressed first in strategic planning ? Recent annual budgets Overall objectives of the firm Outsourcing 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 . 4 / 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 5 / 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 Large span of control Strong organizational culture Strict unity of command 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 6 / 10 Strategic planning, as practiced by most modern organizations, includes all of the followingexcept : Analysis of the current month’s actual variances from budget A long-term focus Strategies that will help in achieving long-range goals Top-level management participation 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 7 / 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 mission statement An objective A strategy 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 8 / 10 All of the following are characteristics of the strategic planning processexceptthe : Analysis and review of departmental budgets Emphasis on long run Analysis of external economic factors 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 9 / 10 What is strategic planning ? It establishes the budget for the organization It establishes the resources that the plan will require It consists of decisions to use parts of the organization’s resources in specified ways It establishes the general direction of the organization 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. 10 / 10 Which of the following cycles doesnothave accounting information recorded into the general ledger reporting system ? Production Revenue Planning 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
