A Product Division Structure

question 103

Multiple Choice

A product division structure:

• A) allows a company to operate in several markets.
• B) has self-contained operating units.
• C) has a corporate headquarters staff.
• D) has centralized support functions at the top of the organization.

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Definitions:

Fixed Costs

Charges that stay the same no matter how much is manufactured or sold, including rental fees, employee pay, and protection premiums.

Depreciation

The accounting method of allocating the cost of a tangible or physical asset over its useful life, reflecting the decrease in value of the asset over time.

Accounting Break-even

The point at which total costs and total revenues are equal, resulting in no profit or loss.

Depreciation

The accounting method of allocating the cost of a tangible asset over its useful life, reflecting the asset's consumption, wear and tear, or obsolescence.