Which Type of Divisional Structure Requires Diligent Attention to Managing

question 118

Multiple Choice

Which type of divisional structure requires diligent attention to managing decentralization and delegation?

• A)Functional
• B)Product
• C)Customer
• D)Geographic
• E)Both narrow and wide

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Definitions:

Management By Exception

A management strategy where managers intervene only when performance deviates significantly from standards, allowing them to focus on significant issues.

Variances Reports

Financial reports that compare actual financial results to the budgeted or standard costs, highlighting deviations.

Promptness

The quality of acting quickly or within an expected timeframe.

Variable Overhead Rate

A metric that represents the variable costs incurred to operate a business, changing with the level of production or activity.