Which Three of the Following Are Good Reasons Why Understanding

question 36

Multiple Choice

Which three of the following are good reasons why understanding the organisation's history is important for managers?

• A) It ensures that managers can identify the reasons for success.
• B) It encourages managers to consider 'What if' questions.
• C) Having a knowledge of the history helps managers to stand outside the organisation and assess how that history may affect decision making.
• D) It makes managers more sensitive to the risk of strategic drift.

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Definitions:

Factory Equipment

Fixed assets used in the manufacturing process, such as machinery and tools.

Factory Overhead

All indirect costs associated with manufacturing, including utilities, rent for the manufacturing space, and salaries of non-direct labor, accumulated and allocated to units produced.

Baker's Wages

Refers to the compensation paid to bakery workers for their labor, considered as direct labor costs in production.

Product Costs

All costs incurred to acquire or manufacture a product, including direct materials, direct labor, and manufacturing overhead expenses.