Which of the Following Statements Is True of Strategic Goals

question 71

Multiple Choice

Which of the following statements is true of strategic goals?

• A) They must be defined in broad, nonnumerical terms.
• B) They must encourage accountability and responsibility by eliminating the concept of deadlines.
• C) They must tie directly to a firm's competitive position.
• D) They must be easy to achieve.

Understand that the impact of a tax on consumption can depend on the availability of substitutes.

Know the distinction between price elastic and price inelastic demand.

Understand the conditions under which a tax might not reduce consumption of a good.

Appreciate the role of government in regulating consumption through taxation.

---

Definitions:

Relevant Range

The range of activity or volume in which the assumptions about fixed costs and variable costs are valid.

Variable Cost

Costs that fluctuate with the level of output, such as materials and labor directly involved in production.

Cost Driver

An element that leads to a variation in the expense associated with an action.

Semivariable Cost

Costs that have both fixed and variable components, changing in response to activity level but not directly proportional to it.