Which of the Following Would Be Likely to Encourage an Organization

question 18

Multiple Choice

Which of the following would be likely to encourage an organization to use Scenario Planning? (Choose all that apply.)

• A) The organization often experiences 'group-think', leading to a narrow view of the future.
• B) Competitor's are increasingly using Scenario Planning as part of their strategy formulation process.
• C) The organization has achieved all of its objectives and operates within a stable external environment.
• D) The organization has not previously experienced any major surprises or expensive strategic mistakes.
• E) Uncertainty in the industry is high, relative to management's ability to predict or adjust to change.

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Definitions:

Manufacturing Overhead

Indirect costs related to manufacturing, not including direct materials or direct labor.

Overapplied Balance

The condition where the allocated manufacturing overhead costs exceed the actual overhead costs incurred.

Manufacturing Overhead Account

An account that tracks indirect production costs, such as utilities and rent for manufacturing facilities.

Work in Process

Inventory items that are partially completed but not yet ready for sale; represents goods in various stages of production.