Which of the Following Statements Is CORRECT

question 41

Multiple Choice

Which of the following statements is CORRECT?

• A) Once a firm has defined its purpose, scope, and objectives, it must develop a strategy or strategies for achieving its goals. The statement of corporate strategies sets forth detailed plans rather than broad approaches for achieving a firm's goals.
• B) A firm's corporate purpose states the general philosophy of the business and provides managers with specific operational objectives.
• C) Operating plans provide management with detailed implementation guidance, consistent with the corporate strategy, to help meet the corporate objectives. These operating plans can be developed for any time horizon, but many companies use a 5-year horizon.
• D) A firm's mission statement defines its lines of business and geographic area of operations.

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Definitions:

Period Cost

Overheads not associated with the production activities, expensed in the timeframe they arise, like sales, general, and administrative outlays.

President's Salary

The compensation awarded to the president of a company, reflecting the level of responsibility and the size and profitability of the company.

Product Cost

The total cost attributed to the production of goods or services, including direct materials, direct labor, and manufacturing overhead.

Carrying Cases

Containers or bags designed to protect and transport various items, often used for electronics, instruments, and equipment.