Functional Departmentalization Can Be Most Accurately Defined As

question 24

Multiple Choice

Functional departmentalization can be most accurately defined as:

• A)organizing work and workers into separate units responsible for particular business operations or areas of expertise.
• B)organizing work and workers into separate units responsible for producing particular products or services.
• C)organizing work and workers into separate units responsible for particular kinds of customers.
• D)organizing work and workers into separate units responsible for doing business in particular geographic areas.
• E)a hybrid structure in which two or more forms of departmentalization are used together.

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Definitions:

Gross Profit

The financial gain made after subtracting the cost of goods sold from total sales revenue.

Ending Inventory

The estimation of goods on hand for sale at the termination of an accounting period, figured by the formula: starting inventory plus acquisitions minus the cost of goods sold.

Inventory Turnover Ratio

A measure of how rapidly inventory is sold or used in a given period, calculated by dividing cost of goods sold by average inventory.

Days' Sales

Often refers to days' sales outstanding (DSO), which measures the average number of days it takes a company to collect payment after a sale has been made.