-Reference Organization Chart 3

question 72

Multiple Choice

-Reference Organization Chart 3.1. Which of the following is correct?

• A) To lower fixed costs, this organization should change to a divisional structure with customer account executives heading each major division.
• B) To improve the communications flow, it is recommended that this company should add a full-time integrator between each account executive and operations head.
• C) It has lost the advantages of economies of scale within the operations departments.
• D) The customer account executives can be considered to be integrators.

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Definitions:

Average Cost

The total cost of production divided by the quantity of output produced, representing the cost per unit of output.

Marginal Cost

The rise in overall expenses incurred from manufacturing an extra unit of a good or service.

Economic Profit

The separation between total proceeds and cumulative costs, covering both explicit financial outlays and implied expenses.

Opportunity Costs

The loss of potential gain from other alternatives when one particular alternative is chosen over others.