As an organization that uses a functional structure grows, ________.
A) the extent of division of labor decreases
B) the process of communication simplifies
C) the cost of each function's contribution to the development of each product becomes increasingly difficult to measure
D) the vertical differentiation within the organization decreases

Question

Quizplus · Accepted Answer

In a functional structure, as an organization grows, the complexity of measuring the cost contribution of each function to product development increases due to the specialization and division of labor inherent in this structure. This makes it challenging to accurately allocate costs to specific products or projects.

As an Organization That Uses a Functional Structure Grows, ________