Which of the Following Statements Is True Regarding a Functional

question 46

Multiple Choice

Which of the following statements is true regarding a functional structure?

• A) In a functional structure, it becomes easier for employees to supervise one another and control one another's behavior.
• B) In the case of a functional structure, people are grouped together according to the specific demands of products, markets, or customers.
• C) The use of the functional structure increases an organization's ability to quickly respond to the changing environment.
• D) The functional structure can be used only in the decentralized organizations.

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Definitions:

Factory Overhead

All indirect costs associated with manufacturing, excluding direct materials and direct labor costs. These costs include utilities, depreciation of factory equipment, and salaries of maintenance personnel.

Direct Materials

Direct materials are raw materials that are directly incorporated into a final product and are directly attributable to the product being manufactured.

Work in Process Account

A Work in Process Account tracks the costs associated with unfinished goods that are still undergoing manufacturing or production processes.

Product Costs

Direct costs associated with manufacturing a product, including materials, labor, and overhead expenses.