Strategic Planning quiz Managerial Accounting Quiz On Mar 14, 2024 Share /10 12345678910 Strategic Planning 10 questions in 10 minutes Answers at the end of the exam Pass Score 70% enter full-screen mode by pressing the icon located in the top- right comer of the exam 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 : Compensation should be based on qualitative factors Managers should establish objectives for their employees Employees should be concerned with routine matters, and managers should attend to exceptions 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 2 / 10 Strategy is a broad term that usually means the selection of overall objectives. Strategic analysis ordinarily excludes the : 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 Best ways to invest in research, design, production, distribution, marketing, and administrative activities 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 3 / 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 Application control Feedforward 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 4 / 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 . 5 / 10 Which of the following cycles does not have accounting information recorded into the general ledger reporting system ? Production Planning Expenditure 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. 6 / 10 All of the following are characteristics of the strategic planning process except the : Emphasis on long run Analysis and review of departmental budgets Review of the attributes and behavior of the organization’s competition Analysis of external economic factors 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 7 / 10 What is strategic planning ? 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 It establishes the budget for 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. 8 / 10 MBO managers are most likely to believe that employees : Dislike their work Work best when threatened with punishment Are self-motivated 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 9 / 10 Which one of the following management considerations is usually addressed first in strategic planning ? Overall objectives of the firm Recent annual budgets 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 . 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 formal statement of the organization’s definition of the fundamental truths that guide its actions A document specifying a sequence of steps detailing the exact manner in which a certain activity must be accomplished 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 business strategic planningit strategic planningsteps in strategic planning