Which of the Following Statements Is Least Accurate

question 272

Multiple Choice

Which of the following statements is least accurate?

• A)As an organization's size increases, product departmentation is preferable to functional departmentation.
• B)Organizations with product departmentation are more centralized than those with functional departmentation.
• C)Organizations with functional departmentation are less complex than those with product departmentation.
• D)Organizations with product departmentation may duplicate effort more than those with functional departmentation.
• E)Communication between functional specialists tends to be more coordinated in organizations with product departmentation than in those with functional departmentation.

Calculate equivalent units of production using the weighted-average method.

Prepare journal entries for various transactions in a process costing system.

Compute the cost per equivalent unit for materials and conversion costs.

Construct cost reconciliation reports for processing departments.

---

Definitions:

Retained Earnings

The portion of net income not distributed as dividends but retained by the company to be reinvested in its core business or to pay debt.

Source of Capital

Various origins from which businesses or individuals can obtain funds, including equity, debt, and internal generation.

Administrative Expenses

Overhead or general expenses related to the day-to-day running of a business, not directly tied to production.

Market Prices

The prevailing price for goods or services in a competitive marketplace, determined by supply and demand.