One of the Key Management Functions Is to Perform a Regular

question 15

Multiple Choice

One of the key management functions is to perform a regular review of product profitability. Which question below would not typically be asked when performing such an analysis?

• A) Are the products priced properly?
• B) Which products are the most profitable?
• C) Which products should be advertised more aggressively?
• D) Should any product manager be rewarded, based on product-line results?
• E) What was the product manager paid last year?

---

Definitions:

Product Costs

Expenses directly tied to the creation of products, including direct materials, direct labor, and factory overhead.

Factory Overhead Cost

All indirect costs associated with manufacturing, including utilities, maintenance, and manager salaries, but not direct materials or direct labor.

Manufacturing Process

The series of steps through which raw materials are transformed into a final product, involving both physical or chemical procedures.

Direct Costs

Expenses that can be directly attributed to the production of specific goods or services, such as raw materials and labor.