Within a Diversified Company, the Responsibilities of Corporate-Level Strategic Managers

question 53

Multiple Choice

Within a diversified company, the responsibilities of corporate-level strategic managers include:

• A) supervising production at the manufacturing units of the company.
• B) compiling sales reports, company costs, employee productivity, and calculating the employee turnover rate.
• C) responding to employee complaints daily.
• D) providing leadership for the entire organization and allocating resources among its different business areas.
• E) maintaining records of transactions with suppliers.

Calculate return on total assets and understand its significance.

Understand the consolidation process for financial statements.

Recognize and account for unrealized gains and losses.

Recognize the significance of ownership percentages in determining the method of accounting for investments.

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Definitions:

Variable Costing

A costing method that incluonly direct materials, direct labor, and variable manufacturing overhead in product costs, excluding fixed manufacturing overhead.

Total Fixed Manufacturing Overhead

The sum of all costs related to manufacturing a product that do not change with the level of production, such as salaries of permanent staff and rent.

Variable Costing

An accounting method that includes only variable production costs—direct materials, direct labor, and variable manufacturing overhead—in product costs.

Fixed Manufacturing Overhead

The portion of manufacturing costs that do not vary with the level of production, such as salaries of supervisors and rent for factory buildings.