A Large Company Recently Adopted a Structure in Order to Give

question 42

Multiple Choice

A large company recently adopted a structure in order to give its top managers more responsibility and flexibility.The company is now structured around four customer groupings: consumers, corporations, small and mid-sized businesses, and government and educational buyers.Which of the following organizational structures has this company created?

• A)Client-based
• B)Product
• C)Geographic
• D)Functional
• E)Simple

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Definitions:

Fixed Cost

Costs that do not change with the level of production or sales, such as rent, salaries, and insurance.

Economic Order Quantity

A calculation used to determine the optimal order quantity that minimizes the total inventory costs, including holding and ordering costs.

Inventory Policy

The set of guidelines a company follows to determine how much inventory should be kept on hand to meet customer demand and manage supply chain efficiency.

Quantity Discounts

Pricing incentives granted to purchasers that buy in large volumes, typically reducing the cost per unit.