Output Controls Can Sometimes Discourage Collaboration Among Different Strategic Business

question 34

Multiple Choice

Output controls can sometimes discourage collaboration among different strategic business units. However, more and more work requires creativity and innovation, especially in highly-developed economies. One way firms are grappling with this issue is by

• A) introducing results-only-work-environments to tap intrinsic motivations.
• B) refining the budgeting process to encourage more department collaboration.
• C) updating standard operating procedures to allow more process flexibility.
• D) using output controls only when the goal is to ensure a predictable outcome.

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Definitions:

Customer Profitability

The profit that a company makes from serving a particular customer or client group over time.

Gross Margin

The difference between sales revenue and the cost of goods sold, representing the profitability of selling inventory.

Servicing Cost

The costs associated with maintaining and repairing products or equipment, contributing to the total cost of ownership.

Just-In-Time (JIT)

An inventory management system that aligns raw-material orders from suppliers directly with production schedules, aiming to reduce inventory costs and increase efficiency.