If Upper Management Is NOT Satisfied with a Division's Current

question 90

True/False

If upper management is NOT satisfied with a division's current profit margin, they should reduce product costs and operating expenses.

---

Definitions:

Cost Structure

An outline of the types and relative proportions of fixed and variable costs that a business incurs in its operations.

Outsourced Activities

Business processes or tasks that are contracted out to an external provider, often to reduce costs, access specialized expertise, or improve efficiency.

Expensive Resources

Resources that have a high cost associated with them, either due to their scarcity, quality, or the demand for them.

Automobile Manufacturer

A company that produces and sells cars, trucks, and other vehicles to consumers worldwide.