IBM's Principal Reason for Existing Is to Earn a Profit

question 109

Multiple Choice

IBM's principal reason for existing is to earn a profit for its shareholders. The means by which IBM does this is through the manufacture of computers. These two statements describe, respectively, IBM's

• A) strategy.
• B) mission.
• C) policy.
• D) tactical plan.
• E) control process.

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Definitions:

Departmental Overhead Rates

Overhead rates calculated for specific departments within a company, allowing for more accurate assignment of overhead costs to products.

Direct Labor Hours

The total hours worked by employees directly involved in the production process.

Machine Hours

A measure of the total time that a machine is operated, used in calculating manufacturing costs and allocating expenses.

Commercial Washer

A heavy-duty washing machine designed for extensive use in a commercial setting, such as in laundromats or hotels.