One Problem with a Functional Structure Is That

question 71

Multiple Choice

One problem with a functional structure is that:

• A)it is more difficult to directly supervise employees within each department.
• B)it produces higher dysfunctional conflict and poorer coordination.
• C)it makes it difficult to permit greater specialization of skills.
• D)it prevents companies from creating economies of scale.
• E)employees have difficulty creating career paths within their area of knowledge.

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Definitions:

Manufacturing Overhead

Consists of all manufacturing costs that are not directly associated with the production of goods, including indirect labor, maintenance, and factory utilities.

Direct Labor-Hours

The compiled working hours of employees directly active in manufacturing tasks.

Activity-Based Costing

A method of allocating overhead and indirect costs to specific products or projects based on their consumption of resources.

Predetermined Overhead Rate

A rate calculated at the beginning of an accounting period, used to allocate overhead costs to products or job orders based on a certain activity.