Which of the Following Is Not a Reason Why Some

question 113

Multiple Choice

Which of the following is not a reason why some firms prefer to conduct strategic-planning in secret?

• A) Dissemination of a firm's strategies may translate into competitive intelligence for rival firms.
• B) It enhances understanding, commitment and communication within the firm.
• C) It limits criticism, second-guessing and hindsight.
• D) Participants in a visible strategy process become more attractive to rival firms, who may lure them away.
• E) Secrecy limits rival firms from imitating or duplicating the firm's strategies.

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Definitions:

Machine Hours

A measure of the actual operating time of a machine or piece of equipment, used for costing and manufacturing planning purposes.

Direct Labor

The cost of wages for employees directly involved in the manufacturing or production of goods or services.

Work in Process Inventory

Represents the cost attributed to partially completed goods, which are still being manufactured.

Payroll Payable

Liabilities for wages owed but not yet paid to employees for work performed within a defined period.