Potential Advantages of Network Structures Include Which of the Following

question 227

Multiple Choice

Potential advantages of network structures include which of the following?

• A) Companies can operate with fewer full-time employees and less complex internal systems.
• B) Companies can reduce overhead costs and increase operating efficiency.
• C) Companies can operate across great distances.
• D) All of the above are potential advantages of a network structure.
• E) None of the above is a potential advantage of a network structure.

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Definitions:

Fixed Manufacturing Overhead

The sum of all the production costs that are not directly linked to the volume of production, such as salaries of managers and depreciation of equipment.

Absorption Costing

A method of costing that includes all manufacturing costs—both fixed and variable—in the cost of a product.

Break-Even

The financial point at which revenues exactly cover all costs, both fixed and variable, representing no profit or loss situation with different wording.

Sales Dollars

The total monetary value of sales within a specific time period.