What Separates a Powerful Strategy from a Run-Of-The-Mill or Ineffective

question 36

Multiple Choice

What separates a powerful strategy from a run-of-the-mill or ineffective one is:

• A) the ability of the strategy to keep the company profitable.
• B) the proven ability of the strategy to generate maximum profits.
• C) the speed with which it helps the company achieve its strategic vision.
• D) management's ability to forge a series of actions,both in the marketplace and internally,that sets the company apart from rivals,and produces sustainable competitive advantage.
• E) whether it allows the company to maximize shareholder value in the shortest possible time.

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Definitions:

Controllable Variance

The difference between actual and budgeted figures that is within the control of a manager, used for assessing performance.

Controllable Variance

The difference between actual costs and budgeted costs that management has the power to influence or control through decisions and actions.

Variable Factory Overhead

Costs in manufacturing that vary with the level of production output, such as utilities and materials used in the production process.

Controllable Variance

The difference between actual budgeted costs and the controllable costs within a budget period.