A Functional Organization Structure Is a Weakness for Project Management

question 46

Multiple Choice

A functional organization structure is a weakness for project management because:

• A)In-depth knowledge and intellectual capital development are enabled.
• B)No disruption or changes to a firm's design are necessitated by projects developed within this structure.
• C)Priorities among functional departments may be different and competing.
• D)Standard career paths are enabled so team members only perform their duties as needed.

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Definitions:

Activity-based Costing

A costing method that assigns overhead and indirect costs to specific activities based on their use of resources, improving accuracy in pricing and product management.

Direct Labor

The cost of wages for workers directly involved in the manufacturing or production of goods.

Allocation Base

A measure of activity such as direct labor-hours or machine-hours that is used to assign costs to cost objects.

Activity Cost Pool

A “bucket” in which costs are accumulated that relate to a single activity measure in an activity-based costing system.