Which of the Following Statements Is True of Functional Departmentalization

question 16

Multiple Choice

Which of the following statements is true of functional departmentalization?

• A) It allows work to be done by highly qualified specialists.
• B) It focuses an organization on customer needs rather than on products.
• C) It leads to duplication of resources, which often results in higher costs.
• D) It is a hybrid structure in which two or more forms of departmentalization are used together.

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Definitions:

Direct Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected amount, valued at the standard cost.

Per-unit Standards

Benchmark cost measures for the production of one unit of a product, covering all relevant costs of production.

Gallons

A unit of volume used primarily in the United States to measure liquids.

Materials Variance

The difference between the expected cost of direct materials and the actual cost incurred.