You Have Divided the Jobs Done by Your Department Through

question 28

Multiple Choice

You have divided the jobs done by your department through work specialisation and are now trying to decide how to best group them for efficiency and service to the customer.You are considering grouping activities by function,product,process or customer. You have decided that since you are a novice at departmentalisation,you will go with the most popular method.You will probably choose ________ departmentalisation.

• A)product
• B)process
• C)customer
• D)function

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Definitions:

Output

In economics, output refers to the total amount of goods and services produced by a company, sector, or economy within a certain period of time.

Function

A relation between a set of inputs and a set of permissible outputs, specifying a single output for each input.

Production Function

An equation that describes the relationship between the quantities of productive factors used and the amount of product obtained.

Returns To Scale

Describes how the output of a production process changes as all inputs are scaled up or down by the same proportion.