Two Divisions of a Company Decide to Use the Same

question 29

Multiple Choice

Two divisions of a company decide to use the same manufacturing facilities to capitalize on the organization's excess capacity and reduce fixed costs.This is an example of

• A)concentration.
• B)rivalry.
• C)counteraction.
• D)adversity.
• E)synergy.

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Definitions:

Relay Division

This term does not specify a widely recognized concept or key term in a general context and may refer to a specific internal department or team within an organization focused on relaying or transferring goods, services, or information.

Variable Expenses

Costs that change in proportion to the activity of a business, such as sales volume or production levels.

Transfer Price

The price at which goods or services are transferred between departments or divisions within the same company, often used for accounting and tax purposes.

Industrial Products Division

A subsection of a company focused on the production and sale of goods used in industrial and commercial applications.