New Strategies Often Entail Budget Reallocations Because

question 54

Multiple Choice

New strategies often entail budget reallocations because

• A)revamping the performance of value chain activities can be costly.
• B)the accompanying policy revisions and compensation incentives tend to require different levels of funding than before.
• C)business units important in the prior strategy but having a lesser role in the new strategy may need downsizing, while units and activities that now have a bigger and more critical strategic role may need more people, new equipment, additional facilities, and above-average increases in their operating budgets.
• D)empowering employees to carry out the new strategy elements and shifting to a total quality management type of culture to build skills in competent strategy execution typically require substantial new funding and budget revisions.
• E)adopting best practices and pushing for continuous improvement tends to reduce costs and reduce overall resource requirements.

Appreciate the role of staircase analysis in enhancing sales forecast accuracy.

Understand the physiological and psychological responses to stress and conflict in individuals.

Identify the phases of the General Adaptation Syndrome as defined by Hans Selye.

Comprehend the impact of cognitive and emotional factors on stress and coping mechanisms.

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Definitions:

Variable Cost Per Unit

This is the cost that varies with each unit produced, including materials, labor, and other direct costs.

Total Fixed Costs

The sum of all costs that do not change with the level of output or activity within a certain period.

Cost-Volume-Profit Analysis

The examination of the relationships among selling prices, sales and production volume, costs, expenses, and profits.

Contribution Margin

The amount of revenue remaining after deducting variable costs, which contributes to covering fixed costs and generating profit.