1. A distinction between forecasting and planning

1. Is not valid because they are synonyms.
2. Arises because forecasting covers the short-term and planning does not.
3. Is that forecasts are used in planning.
4. Is that forecasting is a management activity whereas planning is a technical activity. (cma.1291.3.19)

2. Strategy is a broad term that usually means the selection of overall objectives. Strategic analysis ordinarily excludes the

1. Trends that will affect the entity's markets.
2. Target product mix and production schedule to be maintained during the year.
3. Forms of organizational structure that would best serve the entity.
4. Best ways to invest in research, design, production, distribution, marketing, and administrative activities. (cma.0692 3-12)

3. Which one of the following management considerations is usually addressed first in strategic planning?

1. Outsourcing.
2. Overall objectives of the firm.
3. Organizational structure.
4. Recent annual budgets. (cma 0694 3-14)

4. Behavioral scientists have identified human tendencies that can erode the quality of decision making. Which of the following best describes a behavioral decision error referred to as "framing error"?

1. Evaluating positive information favorably and negative information unfavorably.
2. Getting locked into losing courses of action because of personal commitment.
3. Evaluating the probabilities of outcomes as point estimates instead of ranges.
4. Becoming overconfident because of past successes. (cia 1194 II-5)

5. An organization's policies and procedures are part of its overall system of internal controls. The control function performed by policies and procedures is

1. Feedforward control.
2. Implementation control.
3. Feedback control.
4. Application control. (cia 1195 III-17)

Answer the following and explain the answer!.