A ________ Tends to Be Adopted by Firms That Are

question 18

Multiple Choice

A ________ tends to be adopted by firms that are reasonably diversified and originally had domestic structures based on product divisions.

• A) worldwide product division structure
• B) global matrix structure
• C) worldwide area structure
• D) performance structure

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Definitions:

Prevention Costs

Costs that are incurred to keep defects from occurring.

Internal Failure Costs

Costs associated with defects found before the delivery of a product to the customer, including scrap, rework, and downtime.

External Failure Costs

Costs that occur when products fail to meet quality standards after being delivered to customers, including returns, repairs, and warranty claims.

Opportunity Costs

The financial impact of skipping the immediate next favorable choice in the process of making a decision.