Which of the Following Is Unlikely to Be a Primary

question 32

Multiple Choice

Which of the following is unlikely to be a primary building block in a company's organizational structure?

• A) Functional departments (both line and staff functions).
• B) Process and operations departments.
• C) Empowered employee departments.
• D) Divisional units performing one or more major processing steps along the value chain (components manufacture,assembly,distribution).
• E) Geographic organizational units.

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Definitions:

Fixed Costs

These are expenses that do not change in total regardless of the level of production or sales activity, such as rent, salaries, and insurance.

Unit Sales Price

The price at which a single unit of product is sold.

CVP Graph

A visual representation of the Cost-Volume-Profit analysis that shows the relationship between total costs, sales volume, and profit.

Profit and Loss

The profit and loss statement is a financial report that summarizes revenues, costs, and expenses incurred during a specific period, usually a fiscal quarter or year.