One Disadvantage of a Global Product Division Structure Is That

question 70

True/False

One disadvantage of a global product division structure is that division managers may pursue currently attractive geographic prospects for their products and neglect other areas with better long-term potential.

---

Definitions:

Overhead Costs

Expenses related to the operation of a business that are not directly tied to a specific product or service.

Support Activity Costs

Costs incurred by activities that do not directly produce a product or service but are essential to the organization's operation, such as HR and IT.

Support Department Costs

Expenses associated with functions that benefit the entire organization, such as human resources and IT services.

Indirect Costs

Costs that are not identified with or traced to a cost object.