Restructuring an Organization Can Be in Response to Which of the Following

question 202

Multiple Choice

Restructuring an organization can be in response to which of the following:

• A) Immediate need to reduce costs
• B) Competitive pressure
• C) Significant growth
• D) The launch of new products or services
• E) All of the above

---

Definitions:

Direct Manufacturing Cost

These are costs that can be directly traced to the production of specific goods or services, such as raw materials and direct labor.

Differential Costs

The difference in total cost that will result from selecting one choice over another.

Sunk Costs

Sunk costs refer to money already spent and permanently lost, which cannot be recovered and should not influence future financial decisions.

Opportunity Costs

A rephrased definition: The potential gains or benefits that are lost when choosing one alternative over another in decision-making.