Adopting a Set of "Stretch" Financial and Stretch Strategic Objectives

question 107

Multiple Choice

Adopting a set of "stretch" financial and stretch strategic objectives

• A)pushes the company to strive for lesser but adequate profitability levels, because the stretch objectives are considered unattainable.
• B)is a widely held method for creating a "scorecard" for monitoring company performance.
• C)helps convert the mission statement into meaningful company values.
• D)challenges company personnel to execute the strategy with greater enthusiasm, proficiency, and understanding.
• E)is an effective tool for pushing the company to perform at its full potential and deliver the best possible results.

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Definitions:

Relevant Range

The span of activity or volume levels within which the assumptions about fixed and variable costs in a cost model remain valid.

High-Low Method

A technique in managerial accounting to estimate fixed and variable costs associated with production by analyzing the highest and lowest levels of activity.

Cost Formula

An equation used to determine the total cost of production or operations by accounting for both fixed and variable expenses.

Maintenance Cost

Expenses incurred in the regular upkeep and repair of equipment, buildings, or machinery to ensure efficient operation and prevent breakdowns.