What Is the Goal Behind Creating a Divisional Structure in an Organization

question 98

Multiple Choice

What is the goal behind creating a divisional structure in an organization?

• A)to create smaller, more manageable units within the organization
• B)to merge all the departments that the organization requires to produce its goods or services
• C)to permanently assign employees to cross-functional teams
• D)to group people and resources by function and product simultaneously
• E)to do away with dual reporting relationships and two-boss employees

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Definitions:

Unit Cost

The calculated cost to produce one unit of a product, taking into account all relevant costs of production.

Inventory Valuation

The determination of the value of a company's inventory using specific methods, such as FIFO (First-In, First-Out) or LIFO (Last-In, First-Out), affecting financial statements.

FIFO Method

An inventory valuation method that assumes items purchased first are sold first, affecting the costs of goods sold and ending inventory.

Conversion Activity

The process of converting raw materials into finished goods through labor and manufacturing operations.