Question: 1. Why would a company decide split up into two (or more) companies? 2. In your own words, explain the dilemma that managers face when

1. Why would a company decide split up into two (or more) companies?
2. In your own words, explain the dilemma that managers face when they are trying to decide between product and geographic departmentalization.
3. How does the notion of managerial accountability enter into the “product vs. geographic departmentalization” decision?

Step by Step Solution

★★★★★

3.38 Rating (167 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

1 A company may split into two parts when certain product lines are doing much better than others For example at Kraft it was clear that sales revenue ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

689-4-B-G-M (459).docx

120 KBs Word File

Students Have Also Explored These Related General Management Questions!

Reading and Interpreting Gap Inc.s Inventory Note The 2008 annual report for Gap Inc. includes the following information in the note that summarizes its accounting policies: Merchandise Inventory...

Why would a company decide to sell goods or services on credit if there is always a risk of not collecting amounts owed?

a. Johnson plans to use the preceding ratios as the starting point for discussions with RR's operating team. Based on the data, does RR seem to be following a relaxed, moderate, or restricted current...

1. In your own words, explain the dilemma that exists when managers are trying to decide whether to use a geographic or product basis for departmentalization. Do the same for the...

I have three assignments that I need your help with. Please provide answers to study guide on answer sheet. Thank you in advance. FINANCIAL AND MANAGERIAL ACCOUNTING - Fifth Edition E17-17 Compute...

Question 2 Digital Transformation 10 points Give an example of a company going through digital transformation. Explain the digital transformation and the value to the company. In class, we studied...

I need help with this project, thank you. I am also not sure how to include the excel data with the question. The questions are below. I think I know how to calculate the bpo and I would like to know...

1. How does Heilbroner define economics? 2. What are the two aspects of the economic problem, briefly explain each. 3. Define each type of economy: a. Traditional b. Command c. Market 1 / 12 - 72% +...

Management Accounting Detail answers please QUESTION 5 A Limited with financial year of Dec 31, has two divisions, namely division B and division C. Division B manufactures and sells electronic...

What method of inventory valuation matches each unit on hand at the end of the period with its actual cost? a. last-in, first-out b. specific identification c. average cost d. first-in, first-out

John is self-employed as a certified public accountant. In order to improve is tax knowledge and skills, John spent most of the summer of 2021 taking graduate tax courses at an out-of-town...

Select all that apply Growth hormone: decreases cellular use of fats. is released by the posterior pituitary gland. stimulates cell division. is released by the anterior pituitary gland. enhances...

Why should companies attempt to secure cash for investment in property, plant, and equipment from long-term or permanent sources?

What is an audit, and how does it add to the integrity of accounting information?

Do all glaciers create grooved, striated, and/or polished bedrock surfaces as in Fig. 10.3?

Give some examples of vendor provided tools

A new body of evidence is emerging in the field of behavioral finance which shows that investors often behave irrationally, but in predictable ways. Explain the following biases that affect the...

Select Yes or No A mining company is deciding whether to open a strip mine, which costs $1.5 million. Cash inflows of $13.5 million would occur at the end of Year 1. The land must be returned to its...

The Paulson Company's year-end balance sheet is shown below. Its cost of common equity is 18%, its before-tax cost of debt is 10%, and its marginal tax rate is 25%. Assume that the firm's long-term...