The Multidivisional Structure Was Initially Designed to Produce Three Major

question 66

Multiple Choice

The multidivisional structure was initially designed to produce three major benefits over the functional form.Which of the following is NOT one of the three benefits?

• A) Aligning the corporate structure with the demands of global expansion
• B) More accurate monitoring of the performance of each business
• C) Facilitating comparison between divisions
• D) Stimulating managers of poorly performing divisions to look for ways of improving performance

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Definitions:

Standard Cost Card

A document that details the standard quantities and costs of materials, labor, and overhead for a specific product.

Fixed Manufacturing Overhead

These are the production costs that do not change with the volume of production, such as rent, salaries, and insurance.

Direct Labor Costs

Expenses that can be directly traced to the production of goods or services, including wages of workers who are physically involved in creating a product.

Predetermined Overhead Rate

A rate calculated by dividing estimated overhead costs by an allocation base, used to apply overhead to products or services.