Strategy Formulation Involves

question 27

Multiple Choice

Strategy formulation involves:

• A) establishing the organisation's mission, vision, strategy, goals and values
• B) conducting a SWOT analysis of the organisation's external and internal environments
• C) developing three levels of strategy-corporate, business and functional
• D) both a and b

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Definitions:

Net Markdowns

Net markdowns represent the reduction in the selling price of goods or products, often reflecting changes in market demand or stock clearance needs, net of any markdown cancellations.

Ending Inventory's Valuation

The process of assigning value to the inventory that is still on hand at the end of an accounting period.

Retail Inventory Method

An accounting method used by retailers to estimate their inventory's ending value by using a cost to retail price ratio.

Cost Flow Assumptions

An accounting method that determines the cost of goods sold and ending inventory based on the presumed flow of inventory costs.