Deck 14: Planning and Control

Question 1

Operating decisions are decisions which focus on:

A) Long term investments
B) Labour efficiency
C) The efficient use of resources in the short term
D) Working capital

Answer 1

C

Question 2

It is necessary to take account of short term constraints in annual budgets

Answer 2

True

Question 3

Planning variances are:

A) Due to the actual performance being at variance with plan
B) Caused by plans that are not realistic at the time of performance
C) Caused by human factors that result in a variance from the plan
D) Due to bad planning

Answer 3

B

Question 4

In choosing the most appropriate accounting information system to adopt in respect of the planning and control process the cost and benefits of the system should be considered. Of the following identify which is not a benefit in the context of the planning control process?

A) Better decisions
B) Improved control
C) Ability to take account of the changing environment
D) Higher sales

Question 5

In a relative risky market businesses will tend to invest less in planning because it is a waste of money

Question 6

The main difference between an accounting control system and those of an engineer is that:

A) Action does not automatically correct all variances
B) The effectiveness of the system is dependent upon the attitudes of individuals
C) It is slower to produce output
D) Inputs are planned in more detail

Question 7

Small businesses often despite the fact that they are profitable

Question 8

Strategic decisions are:

A) Decisions that effect the short term
B) Risky decisions
C) Relate to day to day operations
D) Decisions that determine the long term policies of the firm and meet the firms overall objectives

Question 9

Strategic objectives are those that determine the long term policies of the firm and are necessary if the firm is to meet its objectives.

Question 10

Goal congruence refers to ensuring an organisation maximises shareholders wealth

Question 11

The following is extracted from a budgetary control statement of a manufacturing firm: Actual £ Budget £ Variance Materials B 1200kg 5000 6000 1000 Which of the following explanations best describe the possible reason(s) for the variance?

A) Prices are lower than originally expected
B) Efficient purchasing
C) Prices are lower than originally expected and the purchasing was efficiently carried out
D) Discounts were taken

Question 12

What is the first stage of the planning and control process?

A) Planning
B) Setting objectives
C) Designing systems
D) Thinking about strategic decisions

Question 13

Goal congruence is:

A) Determining the objectives of the organisation
B) Determining shareholders objectives
C) The alignment of organisational goals with personal and group goals of the individuals in the organisation
D) Maximisation of profit

Question 14

Monitoring actual performance is a part of the planning activity of organisations

Question 15

Quantitative objectives are not appropriate in the process of setting plans

Question 16

At what stage in the planning and control process should an organisation first recognise the need to diversify and respond to new market conditions?

A) Setting objectives
B) Strategic decisions
C) Setting budgets
D) Control