Functional Groupings Refer to Organizational Groupings

question 2

Multiple Choice

Functional groupings refer to organizational groupings

• A)that group specific customer segments.
• B)in which sales territories are subdivided according to geographic location.
• C)that represent the different departments or business activities within a firm.
• D)in which a unit is responsible for specific product offerings.
• E)that combine both market-based groupings with product groupings.

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Definitions:

Costing System

A method used by organizations to allocate production costs to products or services, aiding in financial analysis and pricing decisions.

Merchandising Entity

A business that purchases finished products and sells them to customers, typically involving retail and wholesale entities.

Value Chain

A series of activities that businesses go through to deliver a valuable product or service to the market.

Management Accounting

The process of preparing management reports and accounts that provide accurate and timely financial and statistical information required by managers to make day-to-day and short-term decisions.