Which of the Following Is an Advantage of a Network

question 23

Multiple Choice

Which of the following is an advantage of a network structure?

• A) Network structures are lean and streamlined.
• B) If one part of the network breaks down or fails to deliver, the other parts of the network will continue working.
• C) A network structure is characterized by technology that enables the organization to have control over activities contracted out.
• D) A network structure has an efficient vertical management system.
• E) Network structures have a relatively large central core that gives them stability.

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Definitions:

High-low Method

A technique used in cost accounting to estimate variable and fixed cost elements of a cost by using the highest and lowest activity levels.

Monthly Production Volume

The total number of units of a product manufactured by a company in a month.

Total Cost

The sum of all expenses incurred in the production of goods or services, including fixed and variable costs.

Monthly Production Volume

The total quantity of goods produced by a business in a month, often analyzed to gauge efficiency, plan inventory needs, or assess production capacity.