All of the Following Are Advantages of a Functional Structure

question 22

Multiple Choice

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

• A) economies of scale.
• B) excellent coordination across functional departments.
• C) in-depth skill specialization and development.
• D) top manager direction and control.
• E) efficient use of resources.

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Definitions:

Inventory Cost

The total cost associated with purchasing and producing the inventory a business holds, including the costs of materials, labor, and overhead.

Perpetual Inventory System

An accounting method where inventory quantities and cost of goods sold are continuously updated with each sale or purchase transaction.

Merchandise On Hand

The inventory of goods that a company currently has available for sale.

Operating Expenses

The costs associated with running a company’s day-to-day operations, excluding the cost of goods sold, such as salaries, rent, and utilities.