Which of the Following Is Most Likely to Be True

question 34

Multiple Choice

Which of the following is most likely to be true of a firm organized along functional lines?

• A) There will be optimal coordination of information and decisions.
• B) The firm will face decreasing returns to scale.
• C) Information required for decisions will be generic and therefore easy to use.
• D) Functional managers may not act in accordance with the firm's larger objectives.
• E) Decision making in the organization will be highly centralized.

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Definitions:

Cash Account

An account that tracks the amount of cash available at any given point in time; it reflects all cash inflows and outflows.

Raw Materials Purchases

This refers to the total cost incurred by a company to buy the raw materials needed for production.

Gallons

This term refers to a unit of volume measurement, commonly used in the United States to measure liquids.

Fixed Manufacturing Overhead

The portion of total manufacturing overhead costs that do not vary with the level of production or output.