You Have Decided That Since You Are a Novice at Departmentalization

question 73

Multiple Choice

You have decided that since you are a novice at departmentalization, you will go with the most popular method. You will probably choose which type of departmentalization?

• A)function
• B)product
• C)process
• D)customer
• E)task

---

Definitions:

Substitution Effect

The change in consumption patterns due to a change in relative prices, where consumers replace more expensive items with less costly alternatives.

Inferior Good

Items for which demand falls when the income levels of buyers go up, unlike standard goods that see an increase in demand with rising incomes.

Income Effect

How shifts in the financial status of individuals or whole economies affect their purchasing desires for specific goods or services.

Price Increase

An increase in the price of products or services.