Which of the Following Is a Difference Between the Product

question 55

Multiple Choice

Which of the following is a difference between the product division structure and the multidivisional structure?

• A)Divisions are independent in a multidivisional structure, but not in a product division structure.
• B)Vertical differentiation is increased in the product division structure, but not in the multidivisional structure.
• C)Support functions are centralized at the top of the organization in a multidivisional structure, but decentralized to the divisions in a product division structure.
• D)Horizontal differentiation is increased in the multidivisional structure, but not in the product division structure.

---

Definitions:

Revenue Recognition

The accounting principle that dictates the specific conditions under which revenue is recognized and recorded in the financial statements.

Right Of Return

A policy allowing customers to return purchased goods under certain conditions, often within a specific time frame.

Revenue Recognition

The accounting principle that dictates when a company should acknowledge income, typically when a product or service has been delivered or rendered.

Right Of Return

A policy that allows customers to return purchased goods under specified conditions.