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Beyond the initial functional division of the organization, further horizontal differentiation may be required if the firm significantly diversifies its product offering, which takes the firm into different business areas.
Work in Process
Materials and products that are partially completed but not yet finished goods in the manufacturing process.
Finished Goods Inventory
The stock of completed products that are ready to be sold by a manufacturing company.
Vertical Analysis
An analysis that compares each item in a current statement with a total or key amount within the same statement.
Financial Statements
Financial reports that summarize the effects of events on a business.
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