Advantages of the Functional Structure Include Each of the Following

question 40

Multiple Choice

Advantages of the functional structure include each of the following except

• A)functional team members work in groups according to their functional specialties.
• B)authority and responsibility are well established.
• C)career advancement for functional team members within the functional area is possible when they show improved morale and productivity.
• D)duplication of effort is avoided due to the coordinated mechanisms in place.

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Definitions:

Direct Labor Cost

The wages paid to employees who are directly involved in the production of goods or services.

Labor Rate Variance

The difference between the actual cost of labor and the expected (or standard) cost, based on hours worked and pay rates.

Labor Efficiency Variance

The variance between the actual number of labor hours utilized and the anticipated standard labor hours for the achieved production volume.

Raw Materials Inventory

The stock of materials on hand that are used in the manufacturing process to produce goods.