Unlike a Functional Structure, a Divisional Structure

question 41

Multiple Choice

Unlike a functional structure, a divisional structure:

• A) organizes a company's units by its activities.
• B) is suitable for meganational companies.
• C) works without cross-functional communication.
• D) organizes a company's units by the customer segments it serves.

Understand the significance of fixed and variable costs in product pricing and profitability analysis.

Identify and calculate the total contribution margin under variable costing.

Differentiate between gross margin and contribution margin in costing approaches.

Understand the impact of cost structure decisions on financial performance and reporting.

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Definitions:

Ableism

Refers to the set of ideas and attitudes that define “normal” abilities of people, and that allocates inferior status and value to individuals who have developmental, emotional, physical, or psychiatric disabilities.

Depression

A common but serious mood disorder that affects how you feel, think, and handle daily activities, characterized by persistent sadness and a lack of interest or pleasure in previously rewarding or enjoyable activities.

Promotion

The act of elevating someone to a higher position or rank within an organization or the efforts made to increase awareness or sales of a product.

Stereotyping

The act of assigning a fixed set of characteristics to a group of people, regardless of the individual differences and nuances among them.