No Radical Alteration in the Design or Operation of the Parent

question 83

Short Answer

No radical alteration in the design or operation of the parent organization is a major advantage of __________ organization.

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Definitions:

Administrative Expense

An administrative expense includes costs related to the general operations of a business, such as salaries of executive personnel, office supplies, and utilities.

Operating Departments

Divisions or units within an organization that are directly involved in the core operations or primary purpose of the business.

Setup Cost

The expenses incurred to get equipment ready to process a different batch of goods, distinct from the operational costs of running the equipment.

Number of Setups

A measurement in manufacturing that refers to how many times equipment is adjusted or changed to produce different products.