Although the Dividing Line Between Strategy and Execution Is a Bit

question 69

True/False

Although the dividing line between strategy and execution is a bit fuzzy, it is often not difficult to diagnose implementation problems and to distinguish them from strategy deficiencies.

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Definitions:

Controllable Revenues

Revenues over which a manager or department has influence or direct control, often used in performance evaluation and budgeting.

Residual Income

The net income an entity generates above its cost of capital, a measure of profitability that calculates the surplus after accounting for the cost of capital.

Operating Income

This is the profit realized from a business's operations, after deducting operating expenses such as wages and cost of goods sold but before interest and taxes.

Acceptable Operating Income

The level of earnings from core operations deemed satisfactory by management, often in line with industry benchmarks or internal targets.