Which of the Following Is the Most Widely Used Basis

question 29

Multiple Choice

Which of the following is the most widely used basis for departmentalization?

• A) customer
• B) work functions
• C) geography
• D) matrix
• E) product or service

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Definitions:

Sales Revenue

Income earned from the sale of goods or services, representing the primary source of income for businesses involved in retail or wholesale trade.

Safety Margin

The difference between the actual performance of an entity and its break-even point.

Budgeted Sales

The projected amount of sales revenue a company expects to achieve in a specific period, as determined during the budgeting process.

Break Even Point

The level of production or sales at which total costs equal total revenues, resulting in no net loss or gain.