How Should Automation Be Implemented

question 152

Multiple Choice

How should automation be implemented?

• A) By replacing human intervention wherever possible
• B) By replacing the existing tools first
• C) By initially concentrating on the most complex tasks
• D) By optimizing as much as possible first

Understand the characteristics and advantages of different organizational structures such as functional, matrix, divisional, and geographical.

Identify the benefits and drawbacks of using a matrix structure within organizations.

Differentiate between various organizational structures based on functions, products, geographic locations, and customer orientations.

Recognize the role of cross-functional and project teams in organizational structure and effectiveness.

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Definitions:

Degree Of Operating Leverage

A financial ratio that measures the sensitivity of a company's operating income to its sales.

Contribution Format

A financial statement format that separates fixed costs from variable costs to highlight the contribution margin of products or services.

Margin of Safety

The difference between actual sales and the break-even point, used to evaluate the level of risk in a business operation.

Break-even Sales

The amount of revenue required to cover total fixed and variable costs, at which point a business neither makes a profit nor incurs a loss.