Which of the Following Statements Is True of Strategic Planning

question 31

Multiple Choice

Which of the following statements is true of strategic planning?

• A) It is typically done by first-line managers.
• B) Implementation of strategies should happen largely through operational planning.
• C) Evaluation of the results of an organization's strategies should be a continual process.
• D) It is typically done for a fifteen-year time frame.

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Definitions:

Sunk Cost

A past cost that has already been incurred and cannot be recovered, which should not influence future financial or business decisions.

Net Operating Income

The profit generated from a company's ordinary, day-to-day business operations, calculated by subtracting operating expenses from gross profit.

Contribution Approach

A method of income statement presentation where variable costs are deducted from sales to find the contribution margin.

Expected Cost

An estimate of the cost associated with a project or production, taking into account various factors like labor, materials, and overhead.