Your customer is managing a large sales team divided in two different geographies in the US

Question

Options

• ADefine them as a single department and two separate cost centers.
• BDefine them as two separate departments and a single cost center.
• CDefine them as one department and one cost center.
• DIt is not possible to fulfill the requirement.

• A
  75% (51)
• B
  15% (10)
• C
  3% (2)
• D
  7% (5)

Explanation

Option A is correct because the two teams share the same function (sales), which maps to a single department, while the geographic split requires separate financial tracking, which is exactly what cost centers are designed for. Departments represent organizational units by function or role, not location - so splitting into two departments (B) would misrepresent the structure, implying fundamentally different business functions rather than a geographic division of the same team. Option C fails because a single cost center cannot independently track expenses and performance across two distinct geographies, defeating the purpose of geographic segmentation. Option D is simply wrong - the requirement is fully achievable with standard organizational modeling tools.

Memory tip: "Same job, one department; different location, different cost center." Department = what they do, Cost Center = where the money flows.

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