What Is the Disadvantage of Functional Organizations

question 40

Multiple Choice

What is the disadvantage of functional organizations?

• A)Poor coordination across departments
• B)Duplication of resources
• C)Less in depth technical expertise
• D)Weak coordination across different product groupings

---

Definitions:

Performance Obligation

A duty or task that a company must perform to satisfy a contractual commitment within a customer contract.

Accounting Period

An Accounting Period is a specific time frame for which financial statements are prepared, helping to compare and analyze financial performance and position, commonly a year, quarter, or month.

Time Period Assumption

The accounting principle that assumes a business's complex and continuous activities can be divided into shorter periods, such as months, quarters, or years, for reporting purposes.

Artificial Time Periods

Divisions of time into periods for accounting purposes that may not correspond to actual calendar periods.