The Management of Neptune Inc

question 49

Multiple Choice

The management of Neptune Inc. creates a definite plan of action that will surely create profits for the company. It allocates and sectionalizes its machinery and personnel. The main office is moved to a prime location that helps attract customers and facilitates competitive development. This plan of action helps Neptune Inc. retain its competitive advantage and has also grow as a company. Which of the following terms does this scenario best illustrate?

• A)Strategic tools
• B)Strategic management process
• C)Functional strategy
• D)Business unit strategy

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Definitions:

Direct Labor Hours

The total hours worked by employees who are directly involved in the manufacturing or production process.

Machine Hours

Machine hours refer to the total time that a machine is operated during a specific period, often used as a basis for allocating manufacturing overhead costs in cost accounting.

Units of Production

A method of depreciation that allocates the cost of an asset over its useful life based on the number of units it produces.

Departmental Overhead Rates

Specific overhead rates calculated for each department within a company, facilitating more accurate cost allocation.