Medium-Sized Firms Tend to Use Which Type of Structure

question 108

Multiple Choice

Medium-sized firms tend to use which type of structure?

• A) Divisional
• B) Matrix
• C) SBU
• D) Functional
• E) Centralized

---

Definitions:

Pretax Income

The amount of income earned by a business before paying income taxes.

Variable Costs

Expenses that change in proportion with the level of production or business activity, such as materials and labor directly involved in manufacturing.

Fixed Costs

Costs that remain constant for a set period of time, regardless of changes in the level of activity or volume of output.

Contribution Margin Ratio

The portion of sales revenue that exceeds variable costs, expressed as a percentage.