Which of the Following Is not an Advantage of a Virtual

question 78

Multiple Choice

Which of the following is not an advantage of a virtual company?

• A) speed
• B) total control over every aspect of the organization
• C) specialized management expertise
• D) low capital investment
• E) flexibility

---

Definitions:

Allocation

Allocation refers to the process of distributing resources, costs, or revenues among various accounts or departments within an organization based on predetermined criteria.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold in a company, including materials, labor, and manufacturing overhead.

Cost of Goods Available

The total cost of inventory that is available for sale at the beginning of a period, including purchases made during that period.

Schedule of Cost

A detailed list showing the various components contributing to the total cost of manufacturing a product or providing a service.