A Multidivisional Structure Consists Of

question 46

Multiple Choice

A multidivisional structure consists of:

• A) a centralized structure combining corporate overhead with support functions.
• B) a decentralized structure consisting of a set of operating divisions organized along business,product,customer groups or geographic lines,and a central corporate headquarters that allocates resources,provides support functions,and monitors divisional activities.
• C) a decentralized structure or divisional structure that monitors performance and allocates funding to those divisions wanting to grow.
• D) a decentralized format of senior executives with large overhead staff to manage and control all the business lines.
• E) None of these.

---

Definitions:

Merchandise Sold

Products or goods that have been sold to customers, typically referring to transactions within the retail or wholesale sector.

Cost of Goods Sold

Directly incurred costs associated with the production of a company’s goods for sale, comprising material and labor expenses.

FOB Shipping Point

A term used in shipping contracts to indicate that the buyer is responsible for the goods and the shipping cost from the moment the goods leave the seller's premises.

Perpetual Inventory System

This method for accounting inventory immediately notes down any purchase or sale through the use of computerized point-of-sale systems and enterprise asset management software.