A Company's Ability to Marshal Adequate Resources in Support of New

question 51

Multiple Choice

A company's ability to marshal adequate resources in support of new strategic initiatives and steer them to the appropriate organizational units is important to the strategy execution process because

• A) changes in strategy often require resource reallocation and organizational units need the proper funding to carry out their part of the strategic plan effectively and efficiently.
• B) accurate budgets are the key to exercising tight financial controls over what organization units can and cannot do in carrying out management's directives to execute the chosen strategy proficiently.
• C) tight budget control is management's most powerful tool for first-rate strategy execution.
• D) lean, carefully managed budgets protect the company's financial condition and eliminate wasteful use of cash.
• E) lean, strictly enforced budgets are management's best and most used means of getting organizational units to exercise the fiscal discipline needed to execute the chosen strategy in a cost-efficient manner.

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Definitions:

Unit Price

The cost assigned to a single unit of a product or service, which helps consumers compare prices and make purchasing decisions.

LIFO Inventory Method

An inventory costing method that assumes the last items put into inventory are the first ones taken out, used in calculating cost of goods sold.

Gross Profit

The difference between total sales revenue and the cost of goods sold, before deducting overheads, salaries, and other expenses.

Raw Materials Inventories

Represents the stock of basic inputs that have not yet been used in the manufacturing process.