Organizational Design

question 87

Multiple Choice

Organizational design:

• A) is a process that deals with how an international business should be organized in order to ensure that its business activities are integrated globally.
• B) must consider the size of an organization and the complexity of its business operations.
• C) must be able to evolve over time in order to enable the organization to respond to change.
• D) all of the above.
• E) two of A, B, and C.

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Definitions:

Cash Account

An account that tracks the amount of cash available to a business or individual.

Raw Materials Inventory

The total cost of all the materials kept in stock that have not yet been used in manufacturing.

Net Operating Income

The total profit of a company after operating expenses are subtracted from operating revenues but before deducting taxes and interest.

Materials Quantity Variance

The deviation found by multiplying the standard cost per unit with the difference in the actual and expected standard volumes of materials used in the production process.