The Use of an International Product Structure

question 38

Multiple Choice

The use of an international product structure

• A) represents a return to the international division times.
• B) has domestic product divisions responsible for the worldwide operations such as marketing and production of products under their control.
• C) often suffers from an absence of area experts.
• D) helps to avoid a duplication of product experts.
• E) often has a group of managerial specialists in an international division who have authority over the product divisions.

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Definitions:

Overhead Costs

Expenses not directly tied to the production of goods or services, like rent, utilities, and administrative costs.

Allocation Method

A procedure used in accounting or budgeting to distribute costs or revenues among various accounts or departments based on predetermined criteria.

ABC Perspective

An ABC Perspective generally refers to viewing activities based on Activity-Based Costing, focusing on managing activities as the route to optimizing costs and improving business operations.

Costs Incurred

Expenses that a company has recognized, reflecting economic value that has been consumed or used up.