Which of the Following Is Most Likely to Be a Characteristic

question 40

Multiple Choice

Which of the following is most likely to be a characteristic of an organization pursuing an innovation strategy?

• A) decentralized control
• B) high specialization
• C) narrow span of control
• D) rigid departmentalization
• E) high formalization

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Definitions:

Contribution Margin

The amount remaining from sales revenue after variable costs have been deducted, indicating how much revenue contributes towards covering fixed costs and generating profit.

Contribution Margin

The difference between a company's sales revenue and its variable costs.

Activity-Based Costing

An accounting method that assigns costs to products or services based on the activities and resources that go into their production, aiming for more precise cost allocation.

Total Overhead

Total overhead refers to the sum of all indirect costs that a business incurs to operate but which are not directly tied to a specific product or service.