At Appleson Publishing, Products Are Produced by a Team Representing

question 153

Short Answer

At Appleson Publishing, products are produced by a team representing different functional groups, none of which have supervisory authority over any of the others. Represented departments include design, production, and marketing.
Design department members are skilled at identifying customer requirements and creating product specifications. Their success is measured by return on product investment, which takes into account both the money earned by a product and the money spent on that product.
Production department members are skilled at project execution. They are responsible for creating products according to the Design department members' specification. The Production department is considered successful when it completes projects according to schedule and project spending does not exceed the project's budget.
Marketing department members are responsible for building profitable relationships with target market segments. They are skilled at communicating a product's value and persuading customers to make purchases. Marketing department members' success is measured by the revenue that the products take in.
Executives claim that this division of labor keeps employees focused on the tasks that fit their skills and leads to a better product. Which of the following, if true, would strengthen that claim?
During every project, design department members spend a large amount of time consulting with marketing department members to learn how the marketing department will attempt to sell the completed project.
When environmental changes that take place after the project has been launched make the project unattractive to customers, the production department attempts to complete the project according to the original schedule and budget.
After a product specification is completed, knowledge of the thinking that went into the product specification is not necessary to complete the project effectively.
The team process is based on the process that Appleson's executives used during the era of print-only product development.
The reasoning behind the team process is presented to new employees as part of their initial orientation.

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Definitions:

Accounting Policies

The distinct guidelines, foundations, methods, regulations, and procedures employed by an organization in the creation and disclosure of financial reports.

Financial Statements

Structured records that convey the financial activities and conditions of a business, entity, or individual, including the balance sheet, income statement, and cash flow statement.

Management's Objectives

The specific goals set by a company's management intended to guide decision-making and strategic planning for business success.

IFRS for SMEs

A simplified, self-contained set of accounting principles intended for smaller, less complex entities, based on the full International Financial Reporting Standards (IFRS).