Which of the Following Statements Is TRUE Regarding Divisional Departmentalization

question 100

Multiple Choice

Which of the following statements is TRUE regarding divisional departmentalization?

• A) It refers to grouping employees according to their skills.
• B) It makes the organization more rigid, and incapable of reacting quickly to change.
• C) It reduces the autonomy of business units.
• D) It results in the creation of a virtual organization.
• E) It can increase costs through duplication.

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Definitions:

Units-of-production Method

A depreciation method that allocates an asset's cost based on its use or output during the period, considering the number of units produced.