In Large Organizations,___________ Arrangements Are Advantageous Because Physical Separation of Activities

question 43

Multiple Choice

In large organizations,___________ arrangements are advantageous because physical separation of activities makes centralized coordination difficult.

• A)customer
• B)functional
• C)geographic
• D)product

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Definitions:

Factory Utilities

Costs associated with the utilities consumed in the production process, such as electricity, gas, and water.

Overhead Allocation Base

A measure or criteria used to distribute indirect costs to various products, services, or departments based on their usage or consumption.

Direct Labor Hours

The total time workers spend producing a product or performing a specific service, directly contributing to the output.

Plantwide Overhead Rate

A single overhead absorption rate used throughout an entire factory or plant, applied uniformly to all cost objects irrespective of the department incurring the overhead.