An Advantage of a Product Structure Is That It Allows

question 126

Multiple Choice

An advantage of a product structure is that it allows a company to increase its division of labor so that it can ________.

• A) outsource noncritical functions
• B) make and sell a wider range of products
• C) increase work specialization
• D) cross-train employees

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Definitions:

Spending Variance

A financial metric that indicates the difference between the budgeted or planned amount of spending and the actual amount spent.

Flexible Budget

A budget that is adaptable and varies according to the changes in activity level or volume.

Net Operating Income

The profit generated from a company's core business operations, excluding deductions of taxes and interest.

Facility Expenses

Costs associated with the physical locations a business operates, including utilities, maintenance, and rent or mortgage payments.