The Three Multidivisional Structures That Are Used to Implement a Diversification

question 39

True/False

The three multidivisional structures that are used to implement a diversification strategy are the competitive form, the strategic business unit form, and the integrated form.

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Definitions:

Flexible Budget

A budget that adjusts or flexes with changes in the volume or activity level, allowing for more accurate forecasting and planning.

Indirect Labour Cost

Expenses related to employees that cannot be directly traced to specific products or services, such as maintenance staff or supervisors.

Machine Hour

A unit of measure representing the operation of a machine for one hour, used in costing and budgeting for manufacturing.

Fixed Overhead Volume Variance

The difference between the budgeted fixed overhead costs and the fixed overhead costs actually allocated to produced goods, based on standard activity levels.