Which of the Following Statements Is a Strategy Decision, Rather

question 156

Multiple Choice

Which of the following statements is a strategy decision, rather than an operational decision?

• A) "We will change the colors of our selection of shirts at the end of the season."
• B) "We will cut prices as needed to in order to protect our market share."
• C) "We will increase the number of training sessions for new sales associates from two to three."
• D) "We will hire a merchandising specialist this month to help remodel our older stores."
• E) "We will place a special ad in the Sunday newspaper promoting our upcoming sale."

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Definitions:

Support Departments

Units within an organization that provide essential services or support to the core operational departments but do not directly contribute to revenue.

Projected Long-Run Needs

Anticipated requirements of a business over an extended period, which influence operational and strategic planning.

Capital Budget

A budget for major capital, or investment, expenditures that are used to acquire or upgrade physical assets such as property and equipment.

Dual Cost Allocation

A method in cost accounting that assigns costs to products or services based on both direct and indirect cost factors.