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Chapter 12 Strategic Accounting Issues in Multinational Corporations Multiple Choice Questions 1. Determining a firm's long-term goals and objectives, adopting courses of action, and allocating resources required to achieve goals is a process called: A) strategy formulation. B) strategic planning. C) strategy implementation. D) capital budgeting. Answer: B Level: Easy LO: 1 2. What term is used to describe the process of revising existing goals and adopting new goals? A) strategy formulation B) strategic planning C) strategy implementation D) capital budgeting Answer: A Level: Medium LO: 1 3. What is a plan for next year expressed in quantitative terms? A) strategy B) capital budget C) operating budget D) management control system Answer: C Level: Easy LO: 1 4. Influencing subordinates to behave in accordance with the goals and objectives of the organization is referred to as: A) performance evaluation. B) management control. C) strategic planning. D) goal congruence . Answer: B Level: Medium LO: 1 Doupnik, International Accounting 2e 1 Chapter 12 Strategic Accounting Issues in Multinational Corporations 5. What is the role of accounting in formulating strategy? A) quantifying opportunities and threats B) preparing budgets C) making estimates of costs and benefits of various alternatives D) All of the above Answer: D Level: Easy LO: 1 6. What is a capital investment? A) using money to buy goods or services B) issuing shares of stock of the corporation C) authorizing and issuing shares of common stock by a multinational corporation D) committing resources to projects that have costs and benefits well into the future Answer: D Level: Medium LO: 2 7. The process of identifying, evaluating, and selecting projects that require substantial amounts of resources and are expected to generate benefits for many years into the future is called: A) strategy formulation. ... View Full Document

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