Which of the Following Is Not True Regarding a Worldwide

question 88

Multiple Choice

Which of the following is not true regarding a worldwide area structure?

• A)It tends to be favored by firms with a low degree of diversification.
• B)It facilitates local responsiveness.
• C)It tends to be favored by firms with a domestic structure based on function.
• D)Decision-making responsibilities are centralized.

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Definitions:

Predetermined Overhead Rate

A rate calculated before the accounting period begins, based on the estimated overhead costs and estimated activity level, used to allocate overhead costs to products or services.

Labor-Hours

A measure of the work performed by employees, typically represented by the number of hours worked.

Variable Manufacturing Overhead

The portion of manufacturing overhead costs that vary with the level of production output.

Fixed Manufacturing Overhead

Consistent costs incurred during the manufacturing process that do not change with the amount of production, like factory rent and salaries of permanent staff.