Identify a True Statement About Functional Departmentalization

question 30

Multiple Choice

Identify a true statement about functional departmentalization.

• A)Companies tend to use functional departmentalization when they are small or just starting out.
• B)Functional departmentalization is the least commonly used organizational structure.
• C)All functionally departmentalized companies have the same functions.
• D)The functional departments in a company that use functional structure are independent of the industry the company is in.
• E)Functional departmentalization enables easy cross­ department coordination.

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Definitions:

Functional Currency

The currency of the primary economic environment in which an entity operates and conducts its business, crucial for financial reporting.

Straight-Line Method

An accounting method of depreciation that allocates an equal amount of depreciation each year over an asset's useful life.

Currency Exchange Rates

The value of one currency for the purpose of conversion to another, indicating how much one currency is worth in terms of the other.

Functional Currency

The primary currency of the primary economic environment in which an entity operates and carries out its financial transactions.