The Strength of the Functional Structure Is That It Focuses

question 93

True/False

The strength of the functional structure is that it focuses on results because managers are responsible for what happens to their products and services.

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Definitions:

Bottleneck

A machine or some other part of a process that limits the total output of the entire system.

Defective Units

Products that fail to meet quality standards or specifications and are therefore unfit for sale or use.

Production Constraint

Any factor that limits the output of a production process, such as limited raw materials, machine capacity, or labor.

Contribution Margin

The difference between sales revenue and variable costs of production, indicating how much revenue contributes to fixed costs and profit.