A Department of a Company Is Made Up of Employees

question 134

Multiple Choice

A department of a company is made up of employees with similar skills and work activities. The company uses the _____ approach to departmentalization.

• A) team-based
• B) horizontal matrix
• C) divisional
• D) vertical functional
• E) process

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Definitions:

Period Costs

Expenses that are not directly tied to the production of goods and are instead expensed in the period they are incurred.

Manufacture Products

The process of converting raw materials or components into finished goods through the use of labor, machinery, and equipment, typically within an industrial setting.

Product Costs

All costs involved in acquiring or producing products, including direct materials, direct labor, and manufacturing overhead.

Period Costs

Costs that are expensed in the period in which they are incurred, not directly associated with production, such as selling and administrative expenses.