Implementing and Executing a Company's Strategy

question 53

Multiple Choice

Implementing and executing a company's strategy

• A)is primarily the job of the company's board of directors since they direct the actions and policies of the top senior executives in executing the strategy.
• B)is a task for every manager and the whole management team, but ultimate responsibility for success or failure falls upon the top senior executives, especially the chief executive officer of the company.
• C)is primarily a responsibility of all company personnel because all personnel are active participants in the strategy execution process and their actions have a huge impact on the ultimate outcome.
• D)should be delegated to a chief strategy implementer appointed by the chief executive officer.
• E)is primarily a task for middle and lower-level managers because it is they who have responsibility for pushing the needed changes all the way down to the lowest levels of the organization.

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Definitions:

Predetermined Overhead Allocation Rate

This rate is calculated before the accounting period begins and is used to allocate overhead costs to products or services based on a specific activity base.

Direct Labor Cost

The wages and benefits paid to workers who are directly involved in the production of goods.

Equivalent Units

A term used in cost accounting to represent a conversion of partially completed goods into a number of fully completed units.

Direct Materials

Raw materials that are directly traceable to the production of a specific good or service and directly incorporated into the final product.