Organizational Structure Needs to Take Account of the Capabilities That

question 53

Multiple Choice

Organizational structure needs to take account of the capabilities that a company possesses (or wishes to develop) because:

• A)The managers who are responsible for a capability need to be the heads of organizational units
• B)Coordination among the people engaged in performing the capability is facilitated if they are located within the same organizational unit
• C)The lack of a separate organizational unit will make it more difficult for organizational learning to be retained
• D)The managers which head different organizational capabilities need to have clear lines of reporting

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Definitions:

Estimated Cost

An approximation of the financial expenditure associated with a project or production.

Ending Inventory

The final value of goods available for sale at the end of an accounting period after subtracting the cost of goods sold.

Retail Method

A pricing strategy used in retail to maintain a consistent profit margin by marking up goods based on their wholesale cost.

Retail Method

An accounting method used to estimate ending inventory and cost of goods sold by calculating a cost-to-retail percentage and applying it to the retail price.