Which of the Following Statements Does NOT Describe an Advantage

question 23

Multiple Choice

Which of the following statements does NOT describe an advantage of product departmentalization?

• A) Decision making can be done at the top management levels.
• B) All similar activities within an organization can be done simultaneously.
• C) Administrative costs are lower.
• D) Sales forecasting is easier.
• E) Performance of individual product lines is easy to assess.

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Definitions:

Common Stock

The stock outstanding when a corporation has issued only one class of stock.

Dividend Yield

A ratio, computed by dividing the annual dividends paid per share of common stock by the market price per share at a specific date, that indicates the rate of return to stockholders in terms of cash dividend distributions.

Par Value

A dollar amount assigned to each share of stock.

Unusual Items

Non-recurring or rare expenses or revenues that are not expected to happen regularly and are outside the ordinary activities of a business.