Functional Knowledge Refers to the Idea That Managers Must ________

question 31

Multiple Choice

Functional knowledge refers to the idea that managers must ________.

• A) understand the cultural, commercial, social, and economic conditions in each host country in which the firm does business
• B) be aware of the competitive forces that have implications for global strategy in each market
• C) comprehend features such as technological trends, customers needs, and competitive forces affecting the goods the firm produces
• D) have access to coworkers with expertise in basic business functions such as production, marketing, finance, accounting, human resources management, and information technology

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Definitions:

Administrative Expense

Expenses related to the general operation of a business, excluding production, marketing, and direct labor costs.

Period Cost

Expenses that are not directly tied to production activity and are expensed in the period they are incurred.

Production Supervisor's Salary

The compensation paid to the individual responsible for overseeing and managing the daily operations of the production floor.

Factory Overhead

All indirect costs associated with the manufacturing process, including utilities, maintenance, and salaries of non-direct labor.