Which of the Following Is True of an Effective Vision

question 98

Multiple Choice

Which of the following is true of an effective vision statement?

• A)It clearly describes an organization as it currently operates.
• B)It inspires the members of an organization.
• C)It is an estimation of the profits of an organization.
• D)It clarifies the short-term direction of a company.
• E)It is a statement strictly based on financial targets.

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Definitions:

Inventory Balance

The total value of a company's inventory at the end of an accounting period, including raw materials, work-in-progress, and finished goods.

Inventory Turnover Distortion

A situation where the calculated rate of inventory turnover does not accurately reflect a business's actual efficiency in managing inventory.

LIFO Liquidation

The process of selling older inventory that was valued under the Last-In, First-Out method, which can affect taxation and financial reporting.

LIFO Reserve

An accounting method that records the difference between the cost of inventory calculated using the Last-In, First-Out (LIFO) method and another inventory valuation method, often FIFO.