If Formulated Properly, All of the Following Are Stated End

question 73

Multiple Choice

If formulated properly, all of the following are stated end results of an effective organizational objective, except

• A) they can be converted into mission and vision statements.
• B) they will provide direction and serve as a starting point for more specific and detailed objectives at lower levels in the organization.
• C) they can establish long-run priorities for the organization.
• D) they can facilitate management control because they serve as standards against which overall organizational performance can be evaluated.

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Definitions:

Coordinating Orders

The process of ensuring that orders from different customers or for various products are managed in a way that optimizes resources and delivery times.

Fixed Ordering Cost

The constant expense associated with placing an order, regardless of the order size, including administrative expenses and fees.

Material Cost

The expense incurred in acquiring the raw materials needed to produce a good, often a significant portion of total production costs.

Holding Cost

The expenses associated with storing unsold goods, including storage, insurance, and deteriorating costs.