ACCA Performance Management (F5) Certification Practice Exam

What type of decisions are considered operational decisions?

1. Long-term strategic planning decisions

2. Day-to-day routine decisions

3. Complex analysis-driven decisions

4. High-level strategic resource decisions

The correct answer is: Day-to-day routine decisions

Operational decisions are related to the day-to-day activities and routine functions of an organization. These decisions typically involve the management of ongoing operations and are often characterized by their immediate impact on the organization. Operational decisions can include choices such as scheduling staff, managing inventory, and overseeing production processes. Their primary focus is on efficiency, effectiveness, and the smooth running of business operations. In contrast, long-term strategic planning decisions involve broader, long-range goals that shape the direction of the entire organization. These types of decisions are fundamentally different from operational ones, as they focus on the future and often involve significant investments and resource allocation that affect multiple years ahead. Complex analysis-driven decisions involve in-depth examination and data analysis, usually for purposes other than immediate operational needs. These decisions may require significant research, forecasting, and financial modeling, dealing with factors beyond day-to-day operations. High-level strategic resource decisions typically pertain to long-term commitments of resources, focusing on major initiatives that will drive the direction of the organization rather than the operational aspects. Hence, day-to-day routine decisions are fundamentally aligned with operational decisions as they are crucial for maintaining the effectiveness of everyday business functions.