, TESTBANK FOR Cost Accounting With Integrated Data Analytics, 2nd
Edition Farmer
Important Notes
The file organized chapter by chapter.
A sample of selected pages has been provided for preview.
All available appendices and Excel files (if included in the original resources) are
provided.
We continuously update our files to ensure you receive the latest and most accurate
editions.
New editions are added regularly – stay connected for updates!
⚠️Note on Answer Keys: If the answer key is not included within the chapter
questions, you will find the complete answers and solutions at the end of each
chapter.
✅ Why Buy From Us?
📚 Complete & organized chapter-by-chapter – no missing content, no guessing.
⚡ Instant digital delivery – get your file the moment you pay, no waiting.
📅 Always up to date – we track new editions so you always get the latest version.
💬 Friendly support – real humans ready to help, anytime you need us.
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🛡️Our Guarantees
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correct version, free of charge.
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,Cost Accounting, 2e (Farmer)
Chapter 1 Cost Accounting Has Purpose
MULTIPLE CHOICE
1) An organization's mission is the same as its ________.
A) purpose
B) vision
C) objectives
D) targets
Answer: A
Explanation: An organization's mission is the same as its purpose. Mission statements are
evolving to encompass purposeful outcomes for customers, local communities, and the
environment, measured with both dollars and sense.
Diff: 1
LO: 1: Explore the elements that support a company's purpose, as well as your own.
Section: 1.1.1 Purpose Is Meaningful
Bloom / AACSB: Remembering / Knowledge
AICPA: BC: Strategic Perspective
IMA: Strategy, Planning & Performance
2) An organization's ________ is its purpose, its reason for existing.
A) mission
B) strategy
C) initiative
D) strategic plan
Answer: A
Explanation: An organization's mission is the same as its purpose. Mission statements are
evolving to encompass purposeful outcomes for customers, local communities, and the
environment, measured with both dollars and sense.
Diff: 1
LO: 1: Explore the elements that support a company's purpose, as well as your own.
Section: 1.1.1 Purpose Is Meaningful
Bloom / AACSB: Remembering / Knowledge
AICPA: BC: Strategic Perspective
IMA: Strategy, Planning & Performance
1
,3) In choosing a strategy, a business begins by undertaking a thorough examination of itself and
the industry within which it operates by performing a ________ analysis.
A) mission and vision statement
B) strategic initiative
C) target objective
D) SWOT
Answer: D
Explanation: In choosing a strategy, a business begins by undertaking a thorough examination
of itself and the industry within which it operates by performing a SWOT analysis.
Diff: 1
LO: 1: Explore the elements that support a company's purpose, as well as your own.
Section: 1.1.2 Company Strategy: Turning Purpose into Action
Bloom / AACSB: Remembering / Knowledge
AICPA: BC: Strategic Perspective
IMA: Strategy, Planning & Performance
4) A SWOT analysis allows an organization to assess its ________.
A) strategies, wealth, outlets, and targets
B) strengths, warnings, outlets, and threats
C) strengths, weaknesses, opportunities, and threats
D) strategies, wealth, opportunities, and threats
Answer: C
Explanation: A SWOT analysis allows an organization to assess its strengths, weaknesses,
opportunities, and threats.
Diff: 1
LO: 1: Explore the elements that support a company's purpose, as well as your own.
Section: 1.1.2 Company Strategy: Turning Purpose into Action
Bloom / AACSB: Understanding / Knowledge
AICPA: BC: Strategic Perspective
IMA: Strategy, Planning & Performance
5) A ________ helps an organization, whether for profit or nonprofit, turn its purpose into action
by establishing the direction of the entity.
A) mission statement
B) strategic plan
C) SWOT analysis
D) vision
Answer: B
Explanation: A strategic plan helps an organization, whether for profit or nonprofit, turn its
purpose into action by establishing the direction of the entity.
Diff: 1
LO: 1: Explore the elements that support a company's purpose, as well as your own.
Section: 1.1.2 Company Strategy: Turning Purpose into Action
Bloom / AACSB: Remembering / Knowledge
AICPA: BC: Strategic Perspective
IMA: Strategy, Planning & Performance
2
,6) An organization's strategic plan includes the why, where, and how for its existence, as
represented by ________.
A) opportunities, strengths, and weaknesses
B) opportunities, strengths, and mission
C) mission, vision, and strategy
D) mission, strengths, and strategy
Answer: C
Explanation: An organization's strategic plan includes the why, where, and how for its
existence, as represented by mission, vision, and strategy.
Diff: 1
LO: 1: Explore the elements that support a company's purpose, as well as your own.
Section: 1.1.2 Company Strategy: Turning Purpose into Action
Bloom / AACSB: Remembering / Knowledge
AICPA: BC: Strategic Perspective
IMA: Strategy, Planning & Performance
7) Which of the following represent internal factors in the SWOT analysis?
A) Opportunities and threats
B) Strengths and weaknesses
C) Strengths and opportunities
D) Weaknesses and threats
Answer: B
Explanation: Internal factors in the SWOT include strengths and weaknesses which the
company must leverage or remedy to be competitive.
Diff: 1
LO: 1: Explore the elements that support a company's purpose, as well as your own.
Section: 1.1.2 Company Strategy: Turning Purpose into Action
Bloom / AACSB: Remembering / Knowledge
AICPA: BC: Strategic Perspective
IMA: Strategy, Planning & Performance
8) What is a narrative that describes what the organization will look like, or a destination to
achieve, by some future date called?
A) SWOT analysis
B) Strategic plan
C) Vision
D) Mission
Answer: C
Explanation: A narrative the describes what the organization will look like, or a destination to
achieve, by some future date is called a vision.
Diff: 1
LO: 1: Explore the elements that support a company's purpose, as well as your own.
Section: 1.1.2 Company Strategy: Turning Purpose into Action
Bloom / AACSB: Remembering / Knowledge
AICPA: BC: Strategic Perspective
IMA: Strategy, Planning & Performance
3
,9) Which of the following statements is correct regarding a SWOT analysis?
A) The basis for evaluation using the SWOT analysis focuses on external factors only.
B) Factors to assess in a SWOT analysis included elements described in Porter's Five Forces.
C) Insignificant in setting a company's strategy is determining the organization's critical success
factors.
D) A SWOT analysis is typically used in creating the balanced scorecard.
Answer: B
Explanation: Here, the company identifies its own internal strengths and weaknesses, which it
must leverage or remedy to be competitive. Further, a company takes stock of external
opportunities and threats–forces that are favorable or unfavorable for the company.
Diff: 1
LO: 1: Explore the elements that support a company's purpose, as well as your own.
Section: 1.1.2 Company Strategy: Turning Purpose into Action
Bloom / AACSB: Understanding / Knowledge
AICPA: BC: Strategic Perspective
IMA: Strategy, Planning & Performance
10) The correct flow of the steps in the creation of an organization's strategic plan is ________.
A) Mission and Vision→Strategies and Initiatives→Goals and Objectives→Measures and
Targets→Results
B) Mission and Vision→Goals and Objectives→Strategies and Initiatives→Measures and
Targets→Results
C) Strategies and Initiatives→Goals and Objectives→Mission and Vision→Measures and
Targets→Results
D) Mission and Vision→Measures and Targets→Strategies and Initiatives→Goals and
Objectives→Results
Answer: B
Explanation: The correct flow of the steps in the creation of an organization's strategic plan is
Mission and Vision→Goals and Objectives→Strategies and Initiatives→Measures and
Targets→Results.
Diff: 1
LO: 1: Explore the elements that support a company's purpose, as well as your own.
Section: 1.1.2 Company Strategy: Turning Purpose into Action
Bloom / AACSB: Understanding / Knowledge
AICPA: BC: Strategic Perspective
IMA: Strategy, Planning & Performance
4
,11) When performing a SWOT analysis, a business would ask, "What are the organization's
needs-improvement areas that impede goal achievement" to address its ________.
A) strengths
B) weaknesses
C) opportunities
D) threats
Answer: B
Explanation: When performing a SWOT analysis, a business would ask, "What are the
organization's needs-improvement areas that impede goal achievement" to address its
weaknesses.
Diff: 1
LO: 1: Explore the elements that support a company's purpose, as well as your own.
Section: 1.1.2 Company Strategy: Turning Purpose into Action
Bloom / AACSB: Understanding / Knowledge
AICPA: BC: Strategic Perspective
IMA: Strategy, Planning & Performance
12) Which of the following statements is correct?
A) A strategic plan conveys the idea of a coordinated, consolidated, short-term, organization-
wide plan.
B) Many strategic plans include both short-term and long-term goals to direct the organization
toward arriving at its vision.
C) Once an organization determines its mission, it does not need to change it.
D) Only for-profit entities need purpose and direction normally detailed in a strategic plan.
Answer: B
Explanation: The strategic plan is a wide-reaching set of documents detailing a company's
purpose, future destination, and short- and long-term techniques for getting there.
Diff: 1
LO: 1: Explore the elements that support a company's purpose, as well as your own.
Section: 1.1.2 Company Strategy: Turning Purpose into Action
Bloom / AACSB: Remembering / Knowledge
AICPA: BC: Strategic Perspective
IMA: Strategy, Planning & Performance
5
,13) A wide-reaching set of documents detailing a company's purpose, future destination, and
short-term and long-term techniques for getting there is its ________.
A) vision
B) strategic plan
C) balanced scorecard
D) SWOT analysis
Answer: B
Explanation: A wide-reaching set of documents detailing a company's purpose, future
destination, and short-term and long-term techniques for getting there is its strategic plan.
Diff: 1
LO: 1: Explore the elements that support a company's purpose, as well as your own.
Section: 1.1.2 Company Strategy: Turning Purpose into Action
Bloom / AACSB: Remembering / Knowledge
AICPA: BC: Strategic Perspective
IMA: Strategy, Planning & Performance
14) Which of the following is not included in an organization's strategic plan?
A) Mission (why)
B) Vision (where)
C) Timing (when)
D) Strategy (how)
Answer: C
Explanation: An organization's strategic plan includes it's why (mission), where (vision) and
how (strategy). It does not include when (timing).
Diff: 1
LO: 1: Explore the elements that support a company's purpose, as well as your own.
Section: 1.1.2 Company Strategy: Turning Purpose into Action
Bloom / AACSB: Remembering / Knowledge
AICPA: BC: Strategic Perspective
IMA: Strategy, Planning & Performance
15) Porter's Five Forces used in the SWOT analysis would not include impacts of ________.
A) customers
B) the strategic plan
C) existing competitors
D) potential new entrants
Answer: B
Explanation: Porter's Five Forces used in the SWOT analysis do not include impacts of the
strategic plan, but do include the impacts of customers, existing competitors, and potential new
entrants.
Diff: 1
LO: 1: Explore the elements that support a company's purpose, as well as your own.
Section: 1.1.2 Company Strategy: Turning Purpose into Action
Bloom / AACSB: Understanding / Knowledge
AICPA: BC: Strategic Perspective
IMA: Strategy, Planning & Performance
6
,16) The current or future external challenges that are unfavorable for an organization are referred
to as ________.
A) threats
B) opportunities
C) strengths
D) weaknesses
Answer: A
Explanation: The current or future external challenges that are unfavorable for an organization
are referred to as threats.
Diff: 1
LO: 1: Explore the elements that support a company's purpose, as well as your own.
Section: 1.1.2 Company Strategy: Turning Purpose into Action
Bloom / AACSB: Remembering / Knowledge
AICPA: BC: Strategic Perspective
IMA: Strategy, Planning & Performance
17) At a minimum, factors to assess in a SWOT analysis include elements described in
________.
A) an organization's critical success factors
B) an organization's key performance indicators (KPI)
C) Porter's Five Forces
D) the balanced scorecard
Answer: C
Explanation: At a minimum, factors to assess in a SWOT analysis include: the impacts of
customers, suppliers, potential new entrants, existing competitors, and substitute products.
Diff: 1
LO: 1: Explore the elements that support a company's purpose, as well as your own.
Section: 1.1.2 Company Strategy: Turning Purpose into Action
Bloom / AACSB: Remembering / Understanding
AICPA: BC: Strategic Perspective
IMA: Strategy, Planning & Performance
18) What a company does well that is helpful for its goal achievement is identified as ________.
A) strengths
B) weaknesses
C) opportunities
D) threats
Answer: A
Explanation: What a company does well that is helpful for goal achievement is identified as
strengths.
Diff: 1
LO: 1: Explore the elements that support a company's purpose, as well as your own.
Section: 1.1.2 Company Strategy: Turning Purpose into Action
Bloom / AACSB: Remembering / Knowledge
AICPA: BC: Strategic Perspective
IMA: Strategy, Planning & Performance
7
, 19) "SMARTER" goals should be all the following except ________.
A) relevant
B) achievable
C) accountable
D) meaningful
Answer: C
Explanation: Smarter goals include A for achievable, not accountable.
Diff: 1
LO: 1: Explore the elements that support a company's purpose, as well as your own.
Section: 1.1.3 Your Own Strategy
Bloom / AACSB: Remembering / Knowledge
AICPA: BC: Strategic Perspective
IMA: Strategy, Planning & Performance
20) ________ goals complete the circle with feedback and adjustment components, which are
necessary for any good goal-setting plan.
A) BALANCED
B) STRONG
C) SMARTER
D) FLEXIBLE
Answer: C
Explanation: SMARTER goals complete the circle with feedback and adjustment components,
which are necessary for any good goal-setting plan.
Diff: 1
LO: 1: Explore the elements that support a company's purpose, as well as your own.
Section: 1.1.3 Your Own Strategy
Bloom / AACSB: Remembering / Knowledge
AICPA: BC: Strategic Perspective
IMA: Strategy, Planning & Performance
21) Which balanced scorecard perspective considers how an organization supports its people and
infrastructure to drive and maintain new products and service development and growth?
A) Financial perspective
B) Customer perspective
C) Internal business process perspective
D) Learning and growth perspective
Answer: D
Explanation: The learning and growth perspective considers how an organization supports its
people and infrastructure to drive and maintain new products and service development and
growth.
Diff: 1
LO: 1: Explore the elements that support a company's purpose, as well as your own.
Section: 1.1.4 Measures, Targets, and Results on the Balanced Scorecard
Bloom / AACSB: Remembering / Knowledge
AICPA: AC: Measurement, Analysis, and Interpretation
IMA: Strategy, Planning & Performance
8
Edition Farmer
Important Notes
The file organized chapter by chapter.
A sample of selected pages has been provided for preview.
All available appendices and Excel files (if included in the original resources) are
provided.
We continuously update our files to ensure you receive the latest and most accurate
editions.
New editions are added regularly – stay connected for updates!
⚠️Note on Answer Keys: If the answer key is not included within the chapter
questions, you will find the complete answers and solutions at the end of each
chapter.
✅ Why Buy From Us?
📚 Complete & organized chapter-by-chapter – no missing content, no guessing.
⚡ Instant digital delivery – get your file the moment you pay, no waiting.
📅 Always up to date – we track new editions so you always get the latest version.
💬 Friendly support – real humans ready to help, anytime you need us.
🔒 Safe & secure – thousands of satisfied students trust us every semester.
🛡️Our Guarantees
💰 Money-Back Guarantee: Not satisfied? We offer a full refund – no questions asked.
🔄 Wrong File? No Problem: Contact us and we will replace it immediately with the
correct version, free of charge.
⏰ 24/7 Support: We are always here – reach out anytime and expect a fast response.
,Cost Accounting, 2e (Farmer)
Chapter 1 Cost Accounting Has Purpose
MULTIPLE CHOICE
1) An organization's mission is the same as its ________.
A) purpose
B) vision
C) objectives
D) targets
Answer: A
Explanation: An organization's mission is the same as its purpose. Mission statements are
evolving to encompass purposeful outcomes for customers, local communities, and the
environment, measured with both dollars and sense.
Diff: 1
LO: 1: Explore the elements that support a company's purpose, as well as your own.
Section: 1.1.1 Purpose Is Meaningful
Bloom / AACSB: Remembering / Knowledge
AICPA: BC: Strategic Perspective
IMA: Strategy, Planning & Performance
2) An organization's ________ is its purpose, its reason for existing.
A) mission
B) strategy
C) initiative
D) strategic plan
Answer: A
Explanation: An organization's mission is the same as its purpose. Mission statements are
evolving to encompass purposeful outcomes for customers, local communities, and the
environment, measured with both dollars and sense.
Diff: 1
LO: 1: Explore the elements that support a company's purpose, as well as your own.
Section: 1.1.1 Purpose Is Meaningful
Bloom / AACSB: Remembering / Knowledge
AICPA: BC: Strategic Perspective
IMA: Strategy, Planning & Performance
1
,3) In choosing a strategy, a business begins by undertaking a thorough examination of itself and
the industry within which it operates by performing a ________ analysis.
A) mission and vision statement
B) strategic initiative
C) target objective
D) SWOT
Answer: D
Explanation: In choosing a strategy, a business begins by undertaking a thorough examination
of itself and the industry within which it operates by performing a SWOT analysis.
Diff: 1
LO: 1: Explore the elements that support a company's purpose, as well as your own.
Section: 1.1.2 Company Strategy: Turning Purpose into Action
Bloom / AACSB: Remembering / Knowledge
AICPA: BC: Strategic Perspective
IMA: Strategy, Planning & Performance
4) A SWOT analysis allows an organization to assess its ________.
A) strategies, wealth, outlets, and targets
B) strengths, warnings, outlets, and threats
C) strengths, weaknesses, opportunities, and threats
D) strategies, wealth, opportunities, and threats
Answer: C
Explanation: A SWOT analysis allows an organization to assess its strengths, weaknesses,
opportunities, and threats.
Diff: 1
LO: 1: Explore the elements that support a company's purpose, as well as your own.
Section: 1.1.2 Company Strategy: Turning Purpose into Action
Bloom / AACSB: Understanding / Knowledge
AICPA: BC: Strategic Perspective
IMA: Strategy, Planning & Performance
5) A ________ helps an organization, whether for profit or nonprofit, turn its purpose into action
by establishing the direction of the entity.
A) mission statement
B) strategic plan
C) SWOT analysis
D) vision
Answer: B
Explanation: A strategic plan helps an organization, whether for profit or nonprofit, turn its
purpose into action by establishing the direction of the entity.
Diff: 1
LO: 1: Explore the elements that support a company's purpose, as well as your own.
Section: 1.1.2 Company Strategy: Turning Purpose into Action
Bloom / AACSB: Remembering / Knowledge
AICPA: BC: Strategic Perspective
IMA: Strategy, Planning & Performance
2
,6) An organization's strategic plan includes the why, where, and how for its existence, as
represented by ________.
A) opportunities, strengths, and weaknesses
B) opportunities, strengths, and mission
C) mission, vision, and strategy
D) mission, strengths, and strategy
Answer: C
Explanation: An organization's strategic plan includes the why, where, and how for its
existence, as represented by mission, vision, and strategy.
Diff: 1
LO: 1: Explore the elements that support a company's purpose, as well as your own.
Section: 1.1.2 Company Strategy: Turning Purpose into Action
Bloom / AACSB: Remembering / Knowledge
AICPA: BC: Strategic Perspective
IMA: Strategy, Planning & Performance
7) Which of the following represent internal factors in the SWOT analysis?
A) Opportunities and threats
B) Strengths and weaknesses
C) Strengths and opportunities
D) Weaknesses and threats
Answer: B
Explanation: Internal factors in the SWOT include strengths and weaknesses which the
company must leverage or remedy to be competitive.
Diff: 1
LO: 1: Explore the elements that support a company's purpose, as well as your own.
Section: 1.1.2 Company Strategy: Turning Purpose into Action
Bloom / AACSB: Remembering / Knowledge
AICPA: BC: Strategic Perspective
IMA: Strategy, Planning & Performance
8) What is a narrative that describes what the organization will look like, or a destination to
achieve, by some future date called?
A) SWOT analysis
B) Strategic plan
C) Vision
D) Mission
Answer: C
Explanation: A narrative the describes what the organization will look like, or a destination to
achieve, by some future date is called a vision.
Diff: 1
LO: 1: Explore the elements that support a company's purpose, as well as your own.
Section: 1.1.2 Company Strategy: Turning Purpose into Action
Bloom / AACSB: Remembering / Knowledge
AICPA: BC: Strategic Perspective
IMA: Strategy, Planning & Performance
3
,9) Which of the following statements is correct regarding a SWOT analysis?
A) The basis for evaluation using the SWOT analysis focuses on external factors only.
B) Factors to assess in a SWOT analysis included elements described in Porter's Five Forces.
C) Insignificant in setting a company's strategy is determining the organization's critical success
factors.
D) A SWOT analysis is typically used in creating the balanced scorecard.
Answer: B
Explanation: Here, the company identifies its own internal strengths and weaknesses, which it
must leverage or remedy to be competitive. Further, a company takes stock of external
opportunities and threats–forces that are favorable or unfavorable for the company.
Diff: 1
LO: 1: Explore the elements that support a company's purpose, as well as your own.
Section: 1.1.2 Company Strategy: Turning Purpose into Action
Bloom / AACSB: Understanding / Knowledge
AICPA: BC: Strategic Perspective
IMA: Strategy, Planning & Performance
10) The correct flow of the steps in the creation of an organization's strategic plan is ________.
A) Mission and Vision→Strategies and Initiatives→Goals and Objectives→Measures and
Targets→Results
B) Mission and Vision→Goals and Objectives→Strategies and Initiatives→Measures and
Targets→Results
C) Strategies and Initiatives→Goals and Objectives→Mission and Vision→Measures and
Targets→Results
D) Mission and Vision→Measures and Targets→Strategies and Initiatives→Goals and
Objectives→Results
Answer: B
Explanation: The correct flow of the steps in the creation of an organization's strategic plan is
Mission and Vision→Goals and Objectives→Strategies and Initiatives→Measures and
Targets→Results.
Diff: 1
LO: 1: Explore the elements that support a company's purpose, as well as your own.
Section: 1.1.2 Company Strategy: Turning Purpose into Action
Bloom / AACSB: Understanding / Knowledge
AICPA: BC: Strategic Perspective
IMA: Strategy, Planning & Performance
4
,11) When performing a SWOT analysis, a business would ask, "What are the organization's
needs-improvement areas that impede goal achievement" to address its ________.
A) strengths
B) weaknesses
C) opportunities
D) threats
Answer: B
Explanation: When performing a SWOT analysis, a business would ask, "What are the
organization's needs-improvement areas that impede goal achievement" to address its
weaknesses.
Diff: 1
LO: 1: Explore the elements that support a company's purpose, as well as your own.
Section: 1.1.2 Company Strategy: Turning Purpose into Action
Bloom / AACSB: Understanding / Knowledge
AICPA: BC: Strategic Perspective
IMA: Strategy, Planning & Performance
12) Which of the following statements is correct?
A) A strategic plan conveys the idea of a coordinated, consolidated, short-term, organization-
wide plan.
B) Many strategic plans include both short-term and long-term goals to direct the organization
toward arriving at its vision.
C) Once an organization determines its mission, it does not need to change it.
D) Only for-profit entities need purpose and direction normally detailed in a strategic plan.
Answer: B
Explanation: The strategic plan is a wide-reaching set of documents detailing a company's
purpose, future destination, and short- and long-term techniques for getting there.
Diff: 1
LO: 1: Explore the elements that support a company's purpose, as well as your own.
Section: 1.1.2 Company Strategy: Turning Purpose into Action
Bloom / AACSB: Remembering / Knowledge
AICPA: BC: Strategic Perspective
IMA: Strategy, Planning & Performance
5
,13) A wide-reaching set of documents detailing a company's purpose, future destination, and
short-term and long-term techniques for getting there is its ________.
A) vision
B) strategic plan
C) balanced scorecard
D) SWOT analysis
Answer: B
Explanation: A wide-reaching set of documents detailing a company's purpose, future
destination, and short-term and long-term techniques for getting there is its strategic plan.
Diff: 1
LO: 1: Explore the elements that support a company's purpose, as well as your own.
Section: 1.1.2 Company Strategy: Turning Purpose into Action
Bloom / AACSB: Remembering / Knowledge
AICPA: BC: Strategic Perspective
IMA: Strategy, Planning & Performance
14) Which of the following is not included in an organization's strategic plan?
A) Mission (why)
B) Vision (where)
C) Timing (when)
D) Strategy (how)
Answer: C
Explanation: An organization's strategic plan includes it's why (mission), where (vision) and
how (strategy). It does not include when (timing).
Diff: 1
LO: 1: Explore the elements that support a company's purpose, as well as your own.
Section: 1.1.2 Company Strategy: Turning Purpose into Action
Bloom / AACSB: Remembering / Knowledge
AICPA: BC: Strategic Perspective
IMA: Strategy, Planning & Performance
15) Porter's Five Forces used in the SWOT analysis would not include impacts of ________.
A) customers
B) the strategic plan
C) existing competitors
D) potential new entrants
Answer: B
Explanation: Porter's Five Forces used in the SWOT analysis do not include impacts of the
strategic plan, but do include the impacts of customers, existing competitors, and potential new
entrants.
Diff: 1
LO: 1: Explore the elements that support a company's purpose, as well as your own.
Section: 1.1.2 Company Strategy: Turning Purpose into Action
Bloom / AACSB: Understanding / Knowledge
AICPA: BC: Strategic Perspective
IMA: Strategy, Planning & Performance
6
,16) The current or future external challenges that are unfavorable for an organization are referred
to as ________.
A) threats
B) opportunities
C) strengths
D) weaknesses
Answer: A
Explanation: The current or future external challenges that are unfavorable for an organization
are referred to as threats.
Diff: 1
LO: 1: Explore the elements that support a company's purpose, as well as your own.
Section: 1.1.2 Company Strategy: Turning Purpose into Action
Bloom / AACSB: Remembering / Knowledge
AICPA: BC: Strategic Perspective
IMA: Strategy, Planning & Performance
17) At a minimum, factors to assess in a SWOT analysis include elements described in
________.
A) an organization's critical success factors
B) an organization's key performance indicators (KPI)
C) Porter's Five Forces
D) the balanced scorecard
Answer: C
Explanation: At a minimum, factors to assess in a SWOT analysis include: the impacts of
customers, suppliers, potential new entrants, existing competitors, and substitute products.
Diff: 1
LO: 1: Explore the elements that support a company's purpose, as well as your own.
Section: 1.1.2 Company Strategy: Turning Purpose into Action
Bloom / AACSB: Remembering / Understanding
AICPA: BC: Strategic Perspective
IMA: Strategy, Planning & Performance
18) What a company does well that is helpful for its goal achievement is identified as ________.
A) strengths
B) weaknesses
C) opportunities
D) threats
Answer: A
Explanation: What a company does well that is helpful for goal achievement is identified as
strengths.
Diff: 1
LO: 1: Explore the elements that support a company's purpose, as well as your own.
Section: 1.1.2 Company Strategy: Turning Purpose into Action
Bloom / AACSB: Remembering / Knowledge
AICPA: BC: Strategic Perspective
IMA: Strategy, Planning & Performance
7
, 19) "SMARTER" goals should be all the following except ________.
A) relevant
B) achievable
C) accountable
D) meaningful
Answer: C
Explanation: Smarter goals include A for achievable, not accountable.
Diff: 1
LO: 1: Explore the elements that support a company's purpose, as well as your own.
Section: 1.1.3 Your Own Strategy
Bloom / AACSB: Remembering / Knowledge
AICPA: BC: Strategic Perspective
IMA: Strategy, Planning & Performance
20) ________ goals complete the circle with feedback and adjustment components, which are
necessary for any good goal-setting plan.
A) BALANCED
B) STRONG
C) SMARTER
D) FLEXIBLE
Answer: C
Explanation: SMARTER goals complete the circle with feedback and adjustment components,
which are necessary for any good goal-setting plan.
Diff: 1
LO: 1: Explore the elements that support a company's purpose, as well as your own.
Section: 1.1.3 Your Own Strategy
Bloom / AACSB: Remembering / Knowledge
AICPA: BC: Strategic Perspective
IMA: Strategy, Planning & Performance
21) Which balanced scorecard perspective considers how an organization supports its people and
infrastructure to drive and maintain new products and service development and growth?
A) Financial perspective
B) Customer perspective
C) Internal business process perspective
D) Learning and growth perspective
Answer: D
Explanation: The learning and growth perspective considers how an organization supports its
people and infrastructure to drive and maintain new products and service development and
growth.
Diff: 1
LO: 1: Explore the elements that support a company's purpose, as well as your own.
Section: 1.1.4 Measures, Targets, and Results on the Balanced Scorecard
Bloom / AACSB: Remembering / Knowledge
AICPA: AC: Measurement, Analysis, and Interpretation
IMA: Strategy, Planning & Performance
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