An Organization That Wants to Compete Through Innovation Should

question 9

Multiple Choice

An organization that wants to compete through innovation should

• A)adopt a mechanistic structure with functional departmentalization.
• B)coordinate employees by writing up formal rules and procedures.
• C)adopt an organic structure and make extensive use of informal communication to coordinate work.
• D)switch to a cost leadership strategy as quickly as possible.
• E)centralize and formalize its organizational structure.

---

Definitions:

Direct Write-off Method

An accounting method where uncollectible accounts receivable are directly written off against income at the time they are deemed non-collectable.

Allowance for Doubtful Accounts

An accounting provision representing the estimated portion of receivables that may not be collected.

Accounts Receivable

Represents money owed to a company by its customers for goods or services delivered but not yet paid for.

Bad Debt Expense

The cost associated with accounts receivable that a company is not able to collect from its debtors, recognized as an expense on the income statement.