Wong Company Utilizes Both Strategic Planning and Operational Budgeting

question 15

Multiple Choice

Wong Company utilizes both strategic planning and operational budgeting. Which one of the following items would normally be considered in a strategic plan?

• A) Setting a target of 12% return on sales
• B) Maintaining the image of the company as the industry leader
• C) Setting a market price per share of stock outstanding
• D) Distributing monthly reports for departmental variance analysis

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Definitions:

Relativistic

Pertaining to the concept that ideas and beliefs are relative to the differences in culture and individual perspective.

Prevalence Rate

The proportion of a population that is affected by a particular disease, condition, or characteristic at a specific time.

Conjunction Fallacy

A logical fallacy that occurs when it is assumed that specific conditions are more probable than a single general one.

Availability Heuristic

A cognitive shortcut that depends on the first examples that spring to mind when assessing a particular subject, idea, technique, or choice.