Peter Drucker Indicates That Managers Should Ask Five Questions in the Process

question 30

True/False

Peter Drucker indicates that managers should ask five questions in the process of formulating an organization's strategy.These questions are: What is our business mission? Who are our customers? What do our customers consider value? What have been our results? What is our plan?

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Definitions:

Fixed Overhead

The portion of total overhead costs that do not change with the level of production or activity within a certain range.

Property, Plant, and Equipment

Long-term tangible assets used in the operation of a business, not expected to be converted to cash in the next year.

Depreciation

The accounting process of allocating the cost of tangible assets over their useful lives.

Direct Labor Variances

The difference between the actual and standard labor costs incurred by a business during a specific period.