Which of the Following Is the First Step of the Planning

question 64

Multiple Choice

Which of the following is the first step of the planning phase of a strategic management process?

• A)assessment of the external environment that the firm will face in the future
• B)establishment of the company's mission
• C)analysis of the firm's relative capabilities to deal successfully with the external environment
• D)seeking alternative strategies using competitive analysis

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Definitions:

Activity-Based Costing

A technique for determining costs that discerns activities in an organization and charges the cost of these activities to all products and services, based on the real amount each consumes.

Unit Product Cost

The total cost incurred to produce a single unit of product, including direct materials, direct labor, and overhead.

Traditional Costing System

An accounting method that allocates overhead costs to products based on a predetermined rate, typically using a single overhead pool.

Direct Labor-Hours

The cumulative hours put in by workers who are directly engaged in the production process.