Wong Company utilizes both strategic planning and operational budgeting. Which one of the following items would normally be considered in a strategic plan?
A) Setting a target of 12% return on sales
B) Maintaining the image of the company as the industry leader
C) Setting a market price per share of stock outstanding
D) Distributing monthly reports for departmental variance analysis

Question

Quizplus · Accepted Answer

Maintaining the image of the company as the industry leader is typically considered in a strategic plan because it addresses long-term goals and objectives related to the company's overall market position and competitiveness. Setting a target of 12% return on sales and setting a market price per share of stock outstanding are both financial metrics that may be addressed more specifically in an operational budget. Distributing monthly reports for departmental variance analysis is part of ongoing operational processes and does not necessarily relate to high-level strategic planning.

Wong Company Utilizes Both Strategic Planning and Operational Budgeting