The Increasing Recognition That an Organization Has Only a Few

question 75

Multiple Choice

The increasing recognition that an organization has only a few core competencies is one of the forces pushing towards more:

• A)functional structures.
• B)simple structures.
• C)client-based divisionalized structures.
• D)network structures.
• E)team-based structures.

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Definitions:

Overhead Allocation Base

A measure or factor used to distribute overhead costs to products or services, such as machine hours or labor costs.

Machine Hours

A metric used in manufacturing to allocate costs based on the number of hours a machine is operated.

Indirect Labor

Labor costs of employees who do not directly work on a product, but whose services are necessary for the manufacturing process.

Factory Utilities

Expenses incurred for the utilities used in the manufacturing plant, such as electricity, gas, and water.