Managerial Accounting QuizStrategic Planning quiz 06/05/2026 1 min read Strategic Planning 10 questions in 10 minutes Pass Score 70% 1 / 10 All of the following are characteristics of the strategic planning processexceptthe : Emphasis on long run Analysis and review of departmental budgets 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 2 / 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 Feedback control Feedforward 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 3 / 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 policy An objective A strategy A mission statement 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 4 / 10 A distinction between forecasting and planning : Is that forecasting is a management activity whereas planning is a technical activity Arises because forecasting covers the short-term and planning does not Is not valid because they are synonyms 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 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 Managers should establish objectives for their employees Employees should be concerned with routine matters, and managers should attend to exceptions 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 6 / 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 . 7 / 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 8 / 10 Which of the following cycles doesnothave accounting information recorded into the general ledger reporting system ? Planning Expenditure Revenue 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 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 High division of labor 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 10 / 10 Strategic planning, as practiced by most modern organizations, includes all of the followingexcept : Top-level management participation A long-term focus 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 Your score is LinkedIn Facebook Twitter VKontakte 0% Send feedback 🚀 Join Telegram Group 📢 Telegram Channel 📘 Facebook Group 👍 Facebook Page 📌 Pinterest
