Honeywell Inc

question 128

Multiple Choice

Honeywell Inc. reorganized its European operations along customer lines to prepare for a unified European Union. In doing so, it abandoned matrix departmentalization. Why would Honeywell engage in such restructuring?

• A)to create pools of resources
• B)to empower its employees
• C)to better adhere to the management philosophy of staff authority
• D)to improve its ability to handle complex tasks
• E)to end conflict between product managers in different parts of its matrix

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Definitions:

Percentage-of-Receivables Method

An accounting method used to estimate the amount of a company's receivables that will not be collected, based on a percentage of the total receivables.

Allowance for Doubtful Accounts

A contra-asset account that represents the estimated amount of accounts receivable not expected to be collected.

Bad Debts Expense

An expense account that represents accounts receivable that a company does not expect to collect and writes off as a loss.

Allowance for Doubtful Accounts

A contra-asset account used to estimate the portion of accounts receivable that is expected not to be collected.