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:

Multi-Product Organization

A company that produces and sells more than one type of product, often requiring complex management of resources and market strategies.

Single Product Organization

A business structure focused on the production and sale of one specific type of product.

Activity-Based Costing

An accounting method that assigns costs to products and services based on the activities and resources that go into producing them.

Single Overhead Rate

A method in cost accounting where a single rate is used to allocate each unit of overhead to products or cost objects.