A Company Needs Performance Targets or Objectives

question 69

Multiple Choice

A company needs performance targets or objectives

• A)to help guide managers in deciding what strategic path to take in the event that a strategic inflection point is encountered.
• B)because they give the company clear-cut strategic intent.
• C)in order to unify the company's strategic vision and business model.
• D)for its operations as a whole and also for each of its separate businesses, product lines, functional departments, and individual work units.
• E)in order to prevent lower-level organizational units from establishing their own objectives.

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Definitions:

Finished Goods Inventory

The stock of completed products that are ready to be sold but have not yet been purchased by customers.

Perfection Standard

A benchmark for achieving the highest possible performance or outcome in a given task or process, often unattainable but used as a goal to strive for.

Skilled Worker

An individual who has specialized training and expertise in a particular trade or profession, often requiring formal education or certification.

Labour Cost

Labour cost is the total expense incurred from employing labor, including wages, benefits, and taxes, significant in assessing overall production costs or operational expenses.