A- Z Planning (Scenario)

question 119

Multiple Choice

A- Z Planning (Scenario)
Organizations ABC and XYZ are both in the same industry and compete for the same set of customers in the marketplace. At ABC, the plans are made at the top level of management each year and then are formulated for and announced to each of the mid- level and first- level managers. At XYZ, the plans are made at the top, and then those managers meet with their subordinates at the next level and mutually agreed- to goals are established with them. The mid- level managers then meet with their first- level managers and mutually agreed- to goals are established with them. Finally, the first- level managers meet with each of their employees and mutually agreed- to goals are established with them.
-Assuming XYZ's hierarchy of goals is clearly defined, the result is ___________.

• A) management by objectives
• B) formal planning department
• C) unity of command
• D) a means- end chain

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Definitions:

Depreciation

Depreciation is the systematic allocation of the cost of a tangible asset over its useful life, reflecting wear and tear or obsolescence.

Retained Earnings

The portion of a company's profit that is held back and not distributed to shareholders, used for reinvestment or debt payment.

Dividend

A distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.

Expense Matching

An accounting principle that states expenses should be recorded in the same period as the revenues they helped to generate, to accurately match income with expenses.