An Organizational Structure Composed of All the Departments That an Organization

question 31

True/False

An organizational structure composed of all the departments that an organization requires to produce its goods or services is known as a functional structure.

---

Definitions:

Manufacturing Overhead

The indirect factory-related costs that are incurred when producing a product, including costs related to management, utilities, and equipment depreciation.

Direct Labor-Hours

The total hours worked by employees who are directly involved in the manufacturing process and whose work can be easily traced to the product.

Manufacturing Overhead

All production costs other than direct labor and direct materials, which are incurred in the manufacturing process.

Direct Labor-Hours

An accounting term indicating the hours of work performed by employees directly involved in the creation of goods or services.