The Product-Management Organization Has Several Advantages

question 115

Multiple Choice

The product-management organization has several advantages. Which of the following is a disadvantage of the product-management system?

• A) the product manager is an expert in his/her category only
• B) the company's smaller brands have a product advocate
• C) provides for management succession
• D) can concentrate on developing cost-effective marketing mix for the product.
• E) he/she can react quickly to new products in the marketplace

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Definitions:

Indirect Manufacturing Cost

Costs involved in production that are not directly linked to individual products, such as maintenance, utilities, and management salaries.

Units Produced

The number of complete items that are made or finished by a manufacturing or production process.

Manufacturing Overhead Cost

Any expenses related to production that are not direct materials or direct labor.

Units Produced

The total number of finished products manufactured during a specific period.