Common Size Income Statements Represent All Figures on the Income

question 130

Multiple Choice

Common size income statements represent all figures on the income statement

• A) as a percentage change from the previous year.
• B) percentages of the current year's sales.
• C) as a percentage of some benchmark figure.
• D) as a percentage of total assets.

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Definitions:

Divisionalized Structures

Divisionalized structures refer to organizational models in which operations are segmented into semi-autonomous divisions, each focusing on a particular product line, market sector, or geographical area.

Geographically-Based Structure

An organizational structure that assigns responsibilities based on geographical divisions or territories.

Matrix Structures

An organizational structure that creates project-based teams from different departments for more dynamic and flexible operations.

Divisional Structure

An organizational structure that groups departments based on similar products, services, customers, or geographic locations.