When a Division of an Organization Has a High Relative

question 42

Multiple Choice

When a division of an organization has a high relative market share and is in a fast- growing industry,it is called a

• A)cat.
• B)question mark.
• C)dog.
• D)cash cow.
• E)star.

---

Definitions:

Decentralized Organization

An organizational structure where decision-making authority is distributed among various levels and departments, enhancing flexibility and responsiveness.

Indirect Expenses

Expenses that are not directly linked to specific product production or service provision, such as utilities and rent.

Fixed Expenses

Expenses that do not change with the level of production or business activity, such as rent, salaries, and insurance premiums.

Departmental Cost Analysis

The process of evaluating and breaking down the costs associated with each department within an organization, facilitating budgeting and efficiency improvements.