One Disadvantage of Product Departmentalization Is That

question 72

Multiple Choice

One disadvantage of product departmentalization is that:

• A) there is less coordination of functions at the product division level.
• B) it requires more personnel and material resources.
• C) lower management assumes a greater burden of establishing effective coordination.
• D) it results in an increased threat from competition.

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Definitions:

Chart of Accounts

A systematic list of all account titles and numbers used by a company, organized to support the recording of transactions.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account columns to verify that the ledger accounts are correctly balanced.

Ledger Balances

The current totals in ledger accounts, reflecting all transactions up to a given point in time.

Trial Balance

An accounting report that lists the balances of all ledgers accounts to verify that total debits equal total credits.