All of the Following Are Possible Coordination Advantages Offered by a Divisional

question 44

Multiple Choice

All of the following are possible coordination advantages offered by a divisional structure EXCEPT ________.

• A) divisional managers enjoy a large measure of autonomy
• B) product specialization enables salespeople to perform more effectively
• C) facilitated communication between functions and improvements in decision making
• D) high-quality products and first-rate customer service

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Definitions:

Warranty Expense

Costs associated with the obligation to repair or replace products within a specified period due to defects or malfunctions, recognized as a liability on the balance sheet.

Repairs

Expenses incurred to restore an asset to a condition where it can be effectively used.

Warranty Expense

Costs incurred by a company to repair, replace, or service products due to manufacturing defects or failures during the warranty period.

Repairs

Expenditures to restore an asset to its former condition or to keep it in operable condition without increasing its life or value significantly.