Which Form of Departmentalization Increases the Risk of Duplication and Underutilization

question 146

Multiple Choice

Which form of departmentalization increases the risk of duplication and underutilization of resources?

• A)Divisional structure
• B)Functional structure
• C)Simple structure
• D)Matrix structure
• E)Network structure

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Definitions:

Absorption Costing

An accounting method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed overheads in the cost of a product.

Last Year

Refers to the 12-month period directly preceding the current date, used in comparative financial analysis.

Northern Division's Sales

The total revenue generated by the Northern Division of a company within a specific period.

Net Operating Income

The total profit of a business after all operating expenses are deducted, but before taxes and interest are considered.