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Why Must Management Have a Thorough Understanding of the Production

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Why must management have a thorough understanding of the production process?


Definitions:

Relevant

Pertaining to decision-making, it refers to information or data that can influence the outcome of the decision.

Incurred Costs

Expenses that have been realized in the course of business operations.

Alternatives

Different options or choices available in a decision-making process.

Traceable

Costs or items that can be directly linked or attributed to a specific product, job, or department, facilitating accurate costing and financial analysis.

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