Which of the Following Statements Is True Regarding a Divisional

question 27

Multiple Choice

Which of the following statements is true regarding a divisional manager?

• A) A divisional manager is a part of the top-management team.
• B) Divisional managers act as outside directors for the company.
• C) A divisional manager is not a corporate manager.
• D) A marketing manager is an example of a divisional manager.

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Definitions:

Output

The quantity of goods or services produced in a given period by a firm, industry, or country.

Total Cost

The combined amount of all expenses and costs associated with the production and sale of a good or service.

Average Total Cost

The total cost of production divided by the number of goods produced, representing the cost per unit of output.

Fixed Costs

Costs that do not vary with the volume of production, such as rent, salaries, and insurance.