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:

Reciprocal Method

An accounting technique used for allocating service department costs to operating departments by incorporating the mutual services provided among all service departments.

Support Departments

Units within an organization that provide essential services or assistance to other units rather than producing goods or services directly.

Cost Equations

Mathematical formulas used to calculate the total cost of producing goods or services, often incorporating variable and fixed costs.

Absorption Costing

A method of accounting that encompasses all costs associated with manufacturing (such as direct materials, direct labor, as well as both variable and fixed overhead expenses) in the pricing of a product.