Which of the Following Is NOT a Strategic Disadvantage of the Divisional

question 34

Multiple Choice

Which of the following is NOT a strategic disadvantage of the divisional organizational structure?

• A) Makes policy consistency a known standard
• B) Increases costs incurred through duplicate functions
• C) Creates difficulty maintaining overall corporate image
• D) Fosters potentially dysfunctional competition for corporate-level resources

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Definitions:

Equivalent Units

A method used in managerial accounting to calculate the number of complete units that could have been produced given the total amount of materials and effort expended.

Production Period

The Production Period is the phase in a manufacturing process when resources are used to convert raw materials into finished products.

Output

The quantity of goods or services produced in a given time period by a company, industry, or country.

Job Order Cost System

An accounting system that accumulates manufacturing costs separately for each order, suitable for businesses producing customized products or offering specialized services.