Cost accounting principles are an important component for any organization that assist management in their decision-making. Additionally, managers rely on accountants to interpret data and provide information to help them understand their business in greater depth. Which of the following choices best represents a strategic plan?
A) Derek is an accountant who has compiled some data for management so that they can increase production over the next year.
B) Shawn is a manager who would like to reduce employee turnover and is meeting with human resources to gather data.
C) Suzanne is an accountant who has compiled an expansion plan for a restaurant to franchise locations and eventually operate in five states.
D) Terrance is a manager who would like to see the retail store where he works implement measures to reduce shrinkage and is estimating the cost to do so.

Question

Quizplus · Accepted Answer

This question requires familiarity with the differences between a strategic plan and an operating plan. Choice C is the correct choice because it identifies a strategic plan that is a comprehensive likely multi-year plan for an organization. An operating plan is more likely to focus on specific outcomes for a year, and the other three choices fall into that category.

Cost Accounting Principles Are an Important Component for Any Organization