The First Step in the Functional Similarity Method of Dividing

question 13

Multiple Choice

The first step in the functional similarity method of dividing jobs is ________.

• A)to designate appropriate activities that must be performed to reach desired objectives
• B)to examine management system objectives
• C)to make specific individuals responsible for performing specific jobs
• D)to design specific jobs by grouping similar activities
• E)to create an organization chart

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Definitions:

Lockbox System

A service provided by banks to companies for the receipt of payment from customers, where payments are sent to a special post office box rather than to the company.

Treasury Bills

Short-term government securities issued at a discount from their face value, with maturities ranging from a few days to 52 weeks.

Collection Time

The average duration it takes for a company to collect payments owed by its customers, often measured in days.

Average Daily Receipts

The average amount of money a business receives on a day-to-day basis over a specified period.