Groupon Has Stated That They Seek to Organization Around Market

question 100

Multiple Choice

Groupon has stated that they seek to organization around market demands that transcend national borders and include countries such as Canada, Brazil, Argentina, Chile, France, England, Ireland, and Spain which are only a few of the company's global locations. Which of the following structures would best fit with Groupon's strategy?

• A)network
• B)virtual
• C)circle
• D)self contained local groupings based on customer needs

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Definitions:

Fixed Cost Per Unit

The total fixed costs of production divided by the number of units produced, decreasing as production volume increases.

Relevant Range

The level of activity within which the assumptions about fixed and variable costs in cost-volume-profit analysis remain valid.

Contribution Margin Ratio

A financial metric that shows the percentage of sales revenue that exceeds variable costs, indicating the portion contributing to covering fixed costs and generating profit.

High-Low Method

A technique that uses the highest and lowest total costs as a basis for estimating the variable cost per unit and the fixed cost component of a mixed cost.