If a New Company Desires to Departmentalize in a Way

question 17

Multiple Choice

If a new company desires to departmentalize in a way that will simplify supervision and facilitate coordination, it will most likely departmentalize by

• A) product.
• B) location.
• C) worker skill level.
• D) customer.
• E) function.

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Definitions:

Showroom

A space used to display products or goods for sale in an attractive setting, often allowing customers to browse or inspect the items.

EAC

Equivalent Annual Cost, a method used to compare the cost effectiveness of different investments or projects with uneven lifespans.

CCA Class

Refers to the Canada Revenue Agency's categorization of depreciable properties for the purpose of determining their depreciation rate for tax purposes.

Discount Rate

The interest rate used in discounted cash flow (DCF) analysis to determine the present value of future cash flows, reflecting the time value of money and risk.