The First Activity in the Strategy-Evaluation Process Is to

question 63

Multiple Choice

The first activity in the strategy-evaluation process is to

• A) develop organizational goals.
• B) examine the underlying bases of a firm's strategy.
• C) compare expected results with actual results.
• D) examine the capital structure.
• E) take corrective actions to ensure that performance conforms to plans.

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Definitions:

Variances

Differences between planned, budgeted, or standard costs and actual costs, used in performance measurement and control.

Standard Cost

A predetermined cost of manufacturing, delivering, or producing goods under normal conditions.

Standard Cost System

An accounting system that estimates the cost of products in advance, using standard rates for materials and labor.

Direct Labor-Hours

The hours worked by employees directly involved in manufacturing goods, which is used as a basis for assigning labor costs to products.