All of the Following Are Advantages of a Functional Structure

question 29

Multiple Choice

All of the following are advantages of a functional structure EXCEPT:

• A) economies of scale.
• B) excellent coordination between functions.
• C) in-depth skill specialization and development.
• D) high quality technical problem solving.
• E) career progress within functional departments.

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Definitions:

Product Ranking

The process of ordering products based on criteria such as sales performance, profitability, or strategic importance.

Variable Selling Expense

Costs that vary directly with the level of sales, such as commissions and credit card fees, as opposed to fixed selling expenses like salaries.

Specialized Machine

Equipment designed for a specific, often complex, function or process within manufacturing or production, not readily substitutable.

Financial Advantage

The benefit gained from making particular investment or financial decisions, often leading to increased wealth or reduced costs.