Which of the Following Is an Advantage of Customer Departmentalization

question 257

Multiple Choice

Which of the following is an advantage of customer departmentalization?

• A)Employees will make more money and have more job security.
• B)Top managers can easily see how the production process is working.
• C)Greater expertise can be developed when specialists of one function work together.
• D)Top managers can determine when resources need to be changed because of increasing demand in a geographic area.
• E)The business benefits from efficiencies and customers get better service.

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Definitions:

Capital Expenditure Decision Process

The process of making decisions related to the acquisition of capital assets, taking into consideration their costs, benefits, and risks.

Profitability Index

A financial metric that compares the present value of future cash flows from an investment to its initial cost, used to evaluate investment attractiveness.

Net Present Value

The difference between the present value of cash inflows and outflows over a period of time, used in capital budgeting.

Capital Rationing

A strategic financial approach where a company restricts its spending on new projects due to limited resources.