Which of the Following Is a Difference Between the Product

question 44

Multiple Choice

Which of the following is a difference between the product division structure and the multidivisional structure?

• A) Horizontal differentiation is increased in the multidivisional structure, but not in the product division structure.
• B) Vertical differentiation is increased in the product division structure, but not in the multidivisional structure.
• C) Support functions are centralized at the top of the organization in a multidivisional structure, but decentralized to the divisions in a product division structure.
• D) Divisions are independent in a multidivisional structure, but not in a product division structure.

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Definitions:

Marginal Cost

The rise in expenses related to the production of an additional unit of a product or service.

Industry Output

The total production of goods and services by all firms operating within a certain industry over a specific period.

Discount Sources

Various means or strategies by which buyers can obtain goods or services at reduced prices, such as coupons, clearance sales, or promotional codes.

Cost Function

A mathematical formula that calculates the total cost incurred by a company to produce a specific quantity of a product or service.