Which of the Following, If True, Would Most Strongly Suggest

question 107

Multiple Choice

Which of the following, if True, would most strongly suggest that TLS should change its organizational structure to a product-based approach?

• A) The largest growth area for TLS is governmental contracts, which have buying procedures that are very different from those of other customers.
• B) TLS currently maintains separate accounting departments in each of its regions.
• C) To be effective, TLS managers need to be experts in at least one of the products that TLS sells.
• D) TLS hopes to build sustained relationships with customers, selling the same person academic tutoring, standardized test preparation, and admissions consulting.
• E) Communication between different marketing departments in different regions has been substandard.

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Definitions:

Multiple Production Department Factory Overhead Rate

A method to allocate factory overhead costs to multiple production departments based on specific measures such as labor hours or machine hours.

Fabrication Department

A specialized division within a company where raw materials are converted into components or products through various processes.

Assembly Department

A segment within a manufacturing facility where components are assembled into final products or where significant assembly work takes place.

Allocation Bases

Criteria or methods used for distributing indirect costs to different products, services, or departments based on predefined factors such as labor hours, machine hours, or material costs.