Organizations That Base Their Structures on Two or More of the Product

question 2

Multiple Choice

Organizations that base their structures on two or more of the product, geographic, or functional structures, have a _______________ organizational format.
Responses:

• A) product-based
• B) matrix
• C) regional
• D) functional
• E) combination

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Definitions:

Traditional Costing System

A costing methodology that assigns manufacturing costs to products based on volume metrics such as direct labor hours or machine hours.

Unit Product

A specific item or version of a product, distinct in unit size or configuration, produced by a company.

Direct Labor-Hours

The total time workers spend producing a product or performing a service, specifically those directly involved in manufacturing.

Activity-Based Costing

A technique for determining costs that discerns activities in an organization and charges the cost of these activities to all products and services, based on the real amount each consumes.