When Companies Have a Workflow with Defined Steps, They May

question 52

Multiple Choice

When companies have a workflow with defined steps, they may use ________ departmentalization.

• A)functional
• B)divisional
• C)process
• D)product
• E)geographic

---

Definitions:

Overhead Cost

Indirect costs associated with manufacturing or producing goods, not directly tied to a specific product, including utilities, rent, and salaries of support staff.

Activity Cost Pools

Aggregations of all the costs associated with a particular business activity or process, used in activity-based costing.

Machine-Hours

A measure of the amount of time a machine is operated, used in allocating manufacturing costs to products.

Batches

Groups or sets of goods that are processed or produced together within a production cycle or process.