When Functional Structures Are Compared with Divisionalized Structures, Functional Structures

question 118

Multiple Choice

When functional structures are compared with divisionalized structures, functional structures are known to:

• A)create better economies of scale.
• B)be more responsive to local markets.
• C)encourage employees to focus on the organization's superordinate goals.
• D)be more decentralized.
• E)be more responsive to client needs and reduce conflict across work units.

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Definitions:

Accrued Expenses

Expenses that have been incurred but not yet paid for, often recognized in accounting through an adjusting entry.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the consumption of the asset's value over time.

Record Depreciation Expense

The process of allocating the cost of tangible assets over their useful lives to accurately reflect their consumption and wear and tear.

Financial Statements

The formal records of the financial activities and position of a business, individual, or other entity, presenting the results of operations and the financial status through three primary documents: balance sheet, income statement, and cash flow statement.