Strategic Planning Is

question 38

Multiple Choice

Strategic planning is:

• A) The continual evaluation of the profitability of the various product lines and divisions.
• B) The systematic planning for long-term investments in operating assets.
• C) Broad, long-range planning.
• D) Planning decisions regarding current operations and those of the immediate future.

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Definitions:

Activity Bases

Activity Bases refer to the measures used in activity-based costing for allocating fixed costs to products or services based on the activities that drive these costs.

Costs

The monetary value required to produce goods or services, including materials, labor, and overhead expenses.

Direct Labor

The labor costs directly associated with the manufacture of products or the provision of services, including wages of workers who can be directly linked to specific goods or services.

Variable Factory Overhead

Costs that fluctuate with the level of production, such as utilities and materials used in the manufacturing process.