Fixed Costs That Continue to Exist Even After a Product

question 118

Multiple Choice

Fixed costs that continue to exist even after a product line is dropped are called

• A) avoidable fixed costs.
• B) unavoidable fixed costs.
• C) variable fixed costs.
• D) relevant fixed costs.

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Definitions:

Mechanistic Structure

A form of organizational structure that is rigid and tightly controlled, emphasizing a hierarchical, top-down management approach and fixed duties.

Organic Structure

An organizational design that is flexible and decentralized, with low levels of formalization, encouraging collaboration and adaptability to change.

Integrative Mechanism

A system or process designed to ensure coordination and collaboration among different parts or functions within an organization, enhancing overall efficiency and effectiveness.

Structural Configurations

Refers to the arrangement and organization of elements within a system, often used in the context of organizational theory to describe the structure of a company or institution.