A Product Group Structure Enables an Organization to Do All

question 19

Multiple Choice

A product group structure enables an organization to do all of the following except:

• A) gain a low-cost advantage.
• B) achieve economies of scale.
• C) transfer core competences to foreign divisions.
• D) achieve local responsiveness.

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Definitions:

Useful Life

The period over which an asset is expected to be usable by an entity for its intended purpose.

Valuation Consolidation

The process of combining the financial statements of separate subsidiaries or entities within a group to present as one entity for the purpose of valuation.

Inventory

Goods and materials that a business holds for the ultimate goal of resale or processing in the production process.