Strategy Is the Concept of How an Organization Will Achieve

question 64

Multiple Choice

Strategy is the concept of how an organization will achieve its objectives; therefore strategic management is:

• A) knowledge that helps in the development and implementation of strategies.
• B) the social source of influence that is used to inspire action taken by others.
• C) the process that helps the organization in the development of strategies.
• D) the purpose of developing strategies in an organization.

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Definitions:

Recognition Of Variances

The process of identifying and documenting the differences between actual and budgeted costs.

Flexible Budgets

Budgets that adjust or flex with variations in activity levels or other relevant factors, allowing more accurate comparisons to actual results.

Cost Driver

A factor, such as machine-hours, beds occupied, computer time, or flight-hours, that causes overhead costs.

Fixed Costs

Costs that do not change with the level of production or sales, such as rent or salaries.