The Purpose of Management by Objectives Is to

question 262

Multiple Choice

The purpose of management by objectives is to

• A) enable top management to set goals for the entire organization.
• B) simplify the jobs of middle management by providing them with predetermined goals and objectives.
• C) help employees motivate themselves with a goal-setting model that involves discussion, review, and evaluation by management and employees.
• D) allow employees to set their own goals without consulting with management.

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Definitions:

Finished Goods

Finished goods refer to completed products that are ready for sale but have not yet been sold to customers.

Direct Materials Cost

The expense associated with raw materials that are directly included in the manufacturing of a product, an important component of total production cost.

Work in Process Account

A financial account found in the ledgers of manufacturing companies where costs related to the production process that are not yet complete are recorded.

Direct Labor Cost

Expenses related to employees who directly work on the manufacturing of products, distinct from indirect labor involved in supervisory and administrative roles.