When ________, the cost of each function's contribution to the development of each product becomes increasingly difficult to measure.
A) an organization with a divisional structure uses the system of management by objectives
B) an organization with a functional structure grows and the number and complexity of their functions and products increases
C) an organization with a matrix structure operates in a stable environment
D) an organization with a divisional structure operates in a rich but complex environment

Question

Quizplus · Accepted Answer

In a functional structure, each function is responsible for its own expertise and contribution to the final product. However, as the number and complexity of functions and products increase, it becomes harder to measure the cost of each function's contribution to each product. This can lead to challenges in allocating resources and prioritizing projects.

When ________, the Cost of Each Function's Contribution to the Development