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Which of the following would be best described as a short term tactical plan?
A Reviewing cost variances and investigate as appropriate
B Comparing actual market share to budget
C Lowering the selling price by 15%
D Monitoring actual sales to budget
In this past paper question
What is the reason for the answer to be option C ?And why cannot
Reviewing cost variances and investigate as appropriate
Or
Comparing actual market share to budgetBe the answer for this question
Because the two that you have listed are not planning.
They are comparing what actually happened to what was planned to happen.
Reviewing cost variances and investigate as appropriate Is coking under tactical planning right sir
Because as per the lectures
I thought– preparing variances , budgets and profit statements
Are coming under tactical planning sirUhmm
I don’t know what you mean by ‘coking’.
Planning is done before the period starts and preparing budgets is part of the planning.
Calculating variances and the profit are done at the end of the period.
Sorry sir it’s coming and not “coking”
So
Monitoring actual sales to budget
Is it a strategic planning sirsir that means variance report comes under controlling
And variance reports or operating statements never comes under tactical planning
Thank you sir
Now I am clearSecondly
Is it ok to put it this way
Budgeted profit statements ( marginal or absorption or activity based costing )
Will come under tactical planningWhereas the
Actual profit statements
(marginal or absorption or activity based costing ) will come under “costing “ and not planningAre we correct to put it this way sir
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