In an SBU Structure, __________ Is/are Evaluated Using Strategic Controls

question 57

Multiple Choice

In an SBU structure, __________ is/are evaluated using strategic controls, whereas __________ is/are evaluated using financial controls.

• A) each SBU; divisions within the SBUs
• B) divisions within the SBUs; each SBU
• C) managers of the SBUs; headquarters staff
• D) headquarters staff; managers of the SBUs

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Definitions:

Advertising Cost

Expenditure incurred to promote products or services to increase brand awareness and boost sales.

Allocation Bases

Criteria or units used to distribute overhead costs to various cost objects, such as machine hours or labor hours.

Return on Investment

A financial metric used to evaluate the efficiency of an investment, calculated by dividing net profit by the cost of the investment.

Ending Assets

The total assets a company reports on its balance sheet at the end of a financial period, reflecting the company's resources and investments.