Which of the Following Is Considered to Be a Disadvantage

question 214

Multiple Choice

Which of the following is considered to be a disadvantage of functional departmentalization?

• A) There may be a lack of communication among the different departments.
• B) Employees must develop skills in depth.
• C) The company must achieve economies of scale.
• D) Top management has to direct and control department activities.

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Definitions:

Direct Manufacturing Cost

Expenses directly associated with the production of goods, such as raw materials and labor directly involved in manufacturing.

Units Produced

Units Produced refer to the total quantity of units of a product completed and made ready for sale during a specific period.

Product Costs

Costs directly associated with the production of goods, including direct materials, direct labor, and manufacturing overhead.

Financial Reporting

Financial reporting involves the disclosure of financial results and associated information by a company to its various stakeholders, including investors and regulators.