Strategic planning

Question 1

sensitivity analysis is :

Answer 1

any process that measures the impact of a change in a single variable or a combination of variables on profits or on some other decision variable.

Question 2

exponential smoothing is:

Answer 2

a statistical method that is useful as sales faorecasting technique

Question 3

Linear programming is

Answer 3

is a model for the allocation of scarce resources.

Question 4

Queuing theory relates to:

Answer 4

the balancing of the cost of waiting with the cost of service; for example, the cost of lost sales resulting from long lines at the cash register versus the cost of opening another cash register.

Question 5

Cost-volume-profit analysis is

Answer 5

a model used to aid decision making relating to product lines, pricing of products, marketing strategy, and utilization of production facilities.

Question 6

Selling price variance for each product =

Answer 6

Quantity sold × (Selling price - Estimated price)

Question 7

There are three levels of interdependence in integrated planning:

Answer 7

Pooled

Sequential

Reciprocal

Question 8

Direct labor efficiency variance (DLEV) =

Answer 8

Standard price × (Standard hours – Actual hours)

Question 9

Cost-volume-profit (CVP) analysis uses

Answer 9

sales price and cost numbers that are assummed to be known in the short run.

Question 10

Program evaluation and review technique (PERT)

Answer 10

is used to plan and control the resources consumed in completing large and complex projects.

Question 11

Expected value (EV) applies

Answer 11

estimated percentages of occurrence to estimated values such as sales or costs.

Question 12

What is strategic planning?

Answer 12

it establishes the general direction of the organization

Question 13

Exponential smoothing

Answer 13

weighs current data havier than older data.

Question 14

Residual risk is :

Answer 14

the risk that remains after management reacts to the risk, such as by instituting appropriate internal controls.

Question 15

Inherent risk is:

Answer 15

he risk that exists before management takes any steps to control the likelihood or impact of a risk.

Question 16

Event risk is :

Answer 16

the risk of unforeseen events associated with a particular entity

Question 17

Detection rik is

Answer 17

the risk that auditors fail to detect a material misstatement in the financial statements.

Question 18

Knowledge-based systems use symbolic processing based on:

Answer 18

heuristics, rules-of-thumb.

Question 19

Aggregate demand is defined as:

Answer 19

the amount of goods and services—the amount of real national income—that will be purchased at each possible price level.

Question 20

Per FASB ASC 820, there are three groups of inputs used when developing fair value:

Answer 20

Level 1: directly observable inputs of identical items, such as quoted active market prices
Level 2: directly or indirectly observable inputs of similar items
Level 3: unobservable inputs