Strategic Planning

Question 1

components of strategic financial planning

Answer 1

1. mission statement
2. vision statement
3. organizational values
4. goals
5. objectives
6. action plans, performance plans, and initiatives

Question 2

action plans should be (creating action plans)

Answer 2

• Directly related to the relevant component of its specific strategic objective.
• Demonstrate how actions will be accomplished.
• Contains multiple performance measures
• Linked to a series of performance measures

Question 3

manager’s responsibility in strategic planning

Answer 3

• planning
• decision-making
• providing accountability

Question 4

reasons for new asset spending of capital expenditures

Answer 4

1. expansion of capacity in a department or program
2. Creation of a new facility, department, or program
3. New equipment to improve productivity
4. New equipment or space to comply with federal or state requirements

Question 5

methods to reporting cash flow in budget construction tools

Answer 5

1. payback method
2. accounting rate of return
3. net present value
4. internal rate of return

Question 6

types of flexible budget variance

Answer 6

• volume variance
• quantity variance
• price variance