Which One of the Following Is a Potential Disadvantage of Functional

question 28

Multiple Choice

Which one of the following is a potential disadvantage of functional departmentalizing?

• A)difficulty for employees to prioritize responsibilities
• B)lack of unity of command
• C)functional standardization that does not meet the needs of the organization's various products and services
• D)difficulty in assigning blame or credit for the performance of a function
• E)lack of consistency in carrying out functions

---

Definitions:

IFRS

International Financial Reporting Standards, which are global accounting standards for preparing financial statements.

Owners' Equity

The residual interest in the assets of a company after deducting its liabilities, representing the owner's claim against the company's assets.

Cost Method

An accounting method used for investments, where the investment is recorded at cost and adjustments are only made for impairments or additional investments, without recognizing unrealized gains or losses.

Appraisal Method

An evaluation process to determine the value of an asset, often used for real estate and investments, based on various criteria.