The Two Main Innovations in a Multidivisional Structure (Over a Functional

question 73

Multiple Choice

The two main innovations in a multidivisional structure (over a functional or product structure) are

• A) a matrix structure at the divisional level and a flat structure at the corporate level.
• B) a product structure at the divisional level and a functional structure at the corporate level.
• C) the organization of business units into one or more divisions and the placement of corporate-level positions to oversee the activities and financial control over each division.
• D) self-contained divisions with operating responsibility and a group of divisional managers with collective strategic responsibility.
• E) a matrix structure at the divisional level and a functional structure at the corporate level.

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Definitions:

Controllable Cost

Expenses that can be directly managed or influenced by a particular manager or department within a company.

Equipment Depreciation

Equipment depreciation is the process of allocating the cost of physical equipment over its useful life, reflecting wear and tear or obsolescence.

Allocating Expenses

The process of assigning costs to the appropriate department, project, or product, often based on their use or benefit derived.

Departments

Divisions within an organization or company, each responsible for specific areas of operation or functions.