Sematech Is a Producer of Computer Chips

question 53

Multiple Choice

Sematech is a producer of computer chips. To gain an advantage over other computer chip makers, Sematech focuses on reducing its costs below all of its competitors and has aligned its value chain accordingly. Recently, several of Sematech's competitors have begun to reduce the company's competitive advantage. In response to this threat, Sematech has decided to add production capacity in an effort to lower costs.
-Given Sematech's business level strategy, which organizational structure is the most appropriate?

• A) matrix structure
• B) U-form structure
• C) multidivisional structure
• D) product-divisional structure

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Definitions:

Indirect Method

A way of preparing the cash flow statement where net income is adjusted for changes in balance sheet items to obtain net cash flow from operating activities.

Direct Method

A cash flow statement preparation approach that lists major operating cash receipts and payments, providing a clear view of operating cash flows.

Comparative Balance Sheets

Financial statements that display the financial position of a business at different points in time side-by-side, allowing for comparison.

Direct Method

An approach in cost accounting where only the direct costs of a department are allocated to its cost objects, ignoring any interdepartmental allocations.