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Strategic control measurements of financial results relate to:
A. External effectiveness at the business-unit level.
B. External effectiveness at the business-operating-system level.
C. Internal efficiency at the business-unit level.
D. Internal efficiency at the departmental level.
Answer: C
Explanation:
Strategic controls should be established to monitor progress, isolate problems, identify invalid assumptions, and take prompt corrective action. As plans are executed at each organizational level, control measurements are made to determine whether objectives have been achieved. Thus, objectives flow down the organizational hierarchy, and control measures flow up. One category of strategic control measures relates to external effectiveness. A second category ofstrategic control measures relates to internal efficiency. At the business-unit level, the latter measures concern financial results.
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