Strategic Planning quiz Managerial Accounting Quiz Share 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 Strict unity of command Large span of control Strong organizational culture 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 2 / 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 policy A strategy 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 3 / 10 MBO managers aremostlikely to believe that employees : Work best when threatened with punishment Dislike their work 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 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 : Employees should participate in setting objectives 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 The hallmark of MBO is the mutual setting of objectives by the superior and the subordinate as a basis for performance evaluation 5 / 10 Strategic planning, as practiced by most modern organizations, includes all of the followingexcept : Top-level management participation Analysis of the current month’s actual variances from budget A long-term focus Strategies that will help in achieving long-range goals 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 6 / 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 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 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 7 / 10 A distinction between forecasting and planning : Arises because forecasting covers the short-term and planning does not Is that forecasting is a management activity whereas planning is a technical activity Is that forecasts are used in planning Is not valid because they are synonyms 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 . 8 / 10 What is strategic planning ? It establishes the resources that the plan will require It establishes the general direction of the organization It establishes the budget for the organization It consists of decisions to use parts of the organization’s resources in specified ways 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. 9 / 10 Strategy is a broad term that usually means the selection of overall objectives. Strategic analysis ordinarilyexcludesthe : Forms of organizational structure that would best serve the entity Target product mix and production schedule to be maintained during the year Best ways to invest in research, design, production, distribution, marketing, and administrative activities 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 10 / 10 Which of the following cycles doesnothave accounting information recorded into the general ledger reporting system ? Revenue Planning Production 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
