Question

When departmentation is done based on production, sales, financing and personnel, it is termed as

(A) Functional departmentation

(B) Product departmentation

(C) Composite departmentation

(D) Customer departmentation​

Answer 1

Explanation:

(A) Functional Basis: This is a very popular method of departmentation. This method of departmentation refers to grouping of activities of the enterprise into major functional departments like production, sales, purchases, accounts, personnel, etc.