Which Type of Planning Is the Primary Tool in Determining

question 33

Multiple Choice

Which type of planning is the primary tool in determining the long-term direction taken by an organization?

• A) strategic
• B) tactical
• C) operational
• D) managerial

---

Definitions:

Dual Rate

A cost allocation method that separates costs into fixed and variable elements, applying different rates for each in costing calculations.

Single Rate

A method used in cost accounting where a single overhead rate is applied to all units produced, regardless of the department in which they were produced or the resources they consumed.

Fixed Costs

Fixed expenditures that are unaffected by production or sales volumes, encompassing rent, salaries, and insurance.

Variable Costs

Expenses that vary directly with the level of production or sales volume, such as raw materials and direct labor costs.