With Regard to the Issue of Geographic Vs

question 116

Multiple Choice

With regard to the issue of geographic vs. product departmentalization, it is correct to say that

• A) it is generally fairly easy for managers to decide whether to use geographical or product departmentalization.
• B) geographic departmentalization reduces the likelihood of duplicate production and other facilities.
• C) geographic departmentalization may lead to compartmentalization of knowledge in each geographic area.
• D) many years ago it made more sense to use product departmentalization, but now more and more companies are moving to geographic departmentalization.
• E) PepsiCo was formerly organized around product areas, but it recently moved to geographic departmentalization.

Understand the classification and treatment of direct and indirect costs in manufacturing.

Identify and differentiate between period costs and product costs.

Understand the concept and components of manufacturing overhead.

Calculate conversion costs and understand their components.

---

Definitions:

Crushing Injury

A type of injury where a part of the body is subjected to a high degree of force or pressure, often resulting in compression and significant damage to the area.

Net Earnings

The amount of income left after deductions, such as taxes and social security charges, have been subtracted from gross income.

Paycheck

A document or electronic transfer that provides payment for employment services rendered, typically issued periodically at fixed intervals, like weekly or monthly.