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List three disadvantages of the divisional structure.
Gross Margin
The difference between revenue and the cost of goods sold, often expressed as a percentage of revenue, indicating the efficiency of a company in managing its production costs.
Relevant Range
The span of operations in which the beliefs regarding variable and fixed cost dynamics are accurate.
Product Costs
Costs directly associated with the production of goods, including direct labor, materials, and manufacturing overhead.
Period Costs
Costs that are expensed in the period in which they are incurred, not directly tied to the production process.
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