In the Context of Organizational Structures, Identify a Difference Between

question 38

Multiple Choice

In the context of organizational structures, identify a difference between a divisional structure and a network structure.

• A) Division of labor in a divisional structure is based on outputs, whereas division of labor in a network structure is based on knowledge.
• B) Coordination in a divisional structure is hierarchical, whereas coordination in a network structure is in the form of dual reporting.
• C) The basic of authority in a divisional structure is functional expertise, whereas the basic of authority in a network structure is negotiation.
• D) The importance of informal structure is low in a divisional structure, whereas the importance of informal structure is modest in a network structure.

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Definitions:

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset since it was put into use, representing its reduction in value over time.

Net Book Value

Refers to the value of an asset after deducting accumulated depreciation and amortization from its original cost.

Wages Expense

The total cost incurred by a company for paying its employees' salaries and wages during a specific period.

Adjusting Journal Entry

A journal entry made at the end of an accounting period to record any unrecognized income or expenses, ensuring that the financial statements comply with the accrual basis of accounting.