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Narrative 6-2
An Internet strategy enabled Nestlé to change its way of doing business and allowed the company to change its staid,risk-averse culture. Nestlé leaders overhauled company processes-from buying raw materials to processing purchase orders to marketing the roughly 2,000 products under its 200 brands.
-Refer to Narrative 6-2. In terms of organizational development,what type of intervention did Nestlé use?
Joint Products
Products that are produced together from the same process or production system, each yielding revenue.
Product Costs
The costs directly associated with the production of goods, including direct labor, materials, and manufacturing overhead.
Weighted Average Method
An inventory costing method that calculates the cost of goods sold and ending inventory based on the weighted average cost of all items available for sale during the period.
Joint Costs
Costs incurred in the process of producing two or more products simultaneously, where the costs cannot be separated easily for each product.
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