Ingram Micro Is the Biggest Computer Wholesaler in the World

question 93

Multiple Choice

Ingram Micro is the biggest computer wholesaler in the world.It has two divisions.One provides supplies for companies that manufacture computer products,such as IBM and Microsoft.To them it sells motherboards,monitors,etc.The other has been developed to serve the needs of the resellers and retailers who sell computers to businesses and individual customers.To them,it sells user-ready computers.Ingram Micro uses a simplistic version of what kind of organizational structure for marketing?

• A)product line grouping
• B)geographical grouping
• C)functional grouping
• D)matrix organization

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Definitions:

Variable Cost

Costs that change in proportion to the level of activity or volume of production in a business.

Fixed Costs

Costs that do not vary with the level of output or sales, such as rent, salaries, and insurance expenses.

Depreciation

Depreciation is an accounting method of allocating the cost of a tangible asset over its useful life.

Contribution Margin

The amount by which sales revenue exceeds variable costs, used to cover fixed costs and generate profit.