Association of Chartered Certified Accountants (ACCA) Certification Practice Test

According to Drucker, which category is NOT a function of management?

1. Setting objectives

2. Motivating and communicating

3. Product pricing

4. Measuring performance

The correct answer is: Product pricing

The correct choice is product pricing because, according to management theorist Peter Drucker, the core functions of management primarily focus on setting objectives, motivating and communicating, and measuring performance. These functions are vital for efficient management practices and driving an organization towards its goals. Setting objectives involves establishing targets that the organization aims to achieve, which guides planning and resource allocation. Motivating and communicating ensure that team members are aligned with these goals and are engaged in their work, fostering a collaborative environment. Measuring performance is fundamental for assessing whether the organization is on track to meet its objectives and for making necessary adjustments. Product pricing, while important to a business's strategy and profitability, is often considered a part of marketing or operational decisions rather than a direct function of management in the context outlined by Drucker. It does not fall under the core management functions that drive organizational direction and performance monitoring.