Which of the Following Is an Advantage of Using a Global

question 3

Multiple Choice

Which of the following is an advantage of using a global area design?

• A) eliminating duplication of functional areas
• B) gaining cost efficiencies in manufacturing
• C) tailoring the product mix in a region
• D) encouraging global product planning

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Definitions:

Equipment Sold

The process of disposing or selling business equipment, recorded as a transaction that may impact a company’s financial statements.

Prepaid Expense

An expense that has been paid in advance and is recorded as an asset until it is actually incurred.

Accrued Liabilities

Obligations that a company has incurred during a specified accounting period but has not yet paid out, often appearing as current liabilities on the balance sheet.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, reflecting the decrease in value over time.