Which of the Following Is True of a Divisional Structure

question 13

Multiple Choice

Which of the following is true of a divisional structure?

• A) It is common in organizations dealing with only one or a few products or services.
• B) It tends to work best in relatively stable environments where problems are predictable.
• C) Its main focus is to put together people within the same expertise and help them work together.
• D) It is an attempt to gain the advantages and minimize the disadvantages of the matrix structure.
• E) It overcomes the disadvantages of a functional structure, such as the functional chimneys problem.

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Definitions:

Average Variable Cost

The cost per unit of output that varies directly with the volume of production, excluding fixed costs.

Average Total Cost

The sum expenses incurred in manufacturing, divided by the total units of production.

Total Fixed Costs

The sum of all costs that do not change with the level of output produced, such as rent or salaries.

Average Grade

The middle value of grades assigned in academic performance, calculated by averaging the grades of all subjects or courses taken.