Scenario - Javier Gomez

question 169

Multiple Choice

Scenario - Javier Gomez
Javier is a veteran manager with Pixel International, Inc. (PII) . Recently PII purchased a small business in the printing industry. Javier has been assigned the task of managing this new acquisition and is currently deciding how best to design its structure. Currently, employees are assigned to one of three departments, including sales, production, and legal defense.
-Current departmentalization of Javier's new division can be characterized primarily as:

• A) vertical functional.
• B) divisional.
• C) horizontal matrix.
• D) team-based.
• E) none of these.

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Definitions:

Net Operating Income

A company's revenue minus its direct costs and operating expenses, indicating the profitability from regular operations before interest and taxes.

Absorption Costing

An accounting method that includes all manufacturing costs (direct materials, direct labor, and both variable and fixed manufacturing overhead) in the price of a product.

Net Operating Income

The profit generated from a business's normal core operations, excluding deductions of interest and taxes.

Variable Costing

An accounting method that only includes variable production costs—direct materials, direct labor, and variable manufacturing overhead—in product cost.