David Has Grouped Some Jobs Together in Such a Way

question 187

Multiple Choice

David has grouped some jobs together in such a way that they can be treated as if they are a separate business which is responsible for its costs,revenues,and profits.David has created a

• A)functional department.
• B)profit centre.
• C)departmentalized work group.
• D)matrix structure.
• E)divisionalized department.

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Definitions:

General and Administrative Expenses

Costs related to the overall operations of a company that are not directly tied to a specific functional area.

Gross Profit

The revenue a corporation retains after removing the costs related to the creation and sale of its products or the provision of its services.

Sales Discounts

Reductions in the amount due from a customer, offered as an incentive for early payment according to the sales terms.

Sales Returns

Transactions where customers return previously purchased merchandise, leading to a reversal of revenue.