What Is the Goal Behind Creating a Divisional Structure in an Organization

question 50

Multiple Choice

What is the goal behind creating a divisional structure in an organization?

• A) To create smaller, more manageable units within the organization
• B) To merge all the departments that the organization requires to produce its goods or services
• C) To permanently assign employees to cross-functional teams
• D) To group people and resources by function and product simultaneously
• E) To do away with dual reporting relationships and two-boss employees

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Definitions:

Product Costs

The costs directly attributable to the creation of products, including materials, labor, and manufacturing overhead.

Distribution

The process of making a product or service available for the consumer or business user that needs it.

Customer Servicing

The provision of services to customers before, during, and after a purchase to enhance their satisfaction and loyalty.

Finished Goods

These are products that have completed the manufacturing process and are ready for sale.