What Is the Role of Accounting in Formulating Strategy

question 11

Multiple Choice

What is the role of accounting in formulating strategy?

• A) Quantifying opportunities and threats
• B) Preparing budgets
• C) Making estimates of costs and benefits of various alternatives
• D) All of the above

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Definitions:

Budget Line

A graphical representation of all possible combinations of two goods that a consumer can purchase with a given budget at fixed prices.

Expected Percentage Return

The predicted return on an investment, expressed as a percentage of the initial investment.

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data values from the mean of the dataset.

Weighted Average Return

A return measure that considers the proportional relevance of each component return in the calculation.