Examlex
In the classic global matrix structure, horizontal differentiation proceeds along two dimensions. These dimensions are
Direct Materials
Raw materials and components that are directly used in the production of a product, which can be easily traced and assigned to specific goods.
Direct Labor Costs
Expenses associated with employees who are directly involved in the production of goods or services.
Factory Overhead Account
An account that accumulates all indirect costs associated with manufacturing operations, not directly tied to specific units.
Factory Overhead
All indirect costs associated with manufacturing, including utilities, maintenance, and management salaries, not directly tied to the production of goods.
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