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Product divisions are divisions created to concentrate on a single product or service

Product divisions are divisions created to concentrate on a single product or service or atleast a relatively homogenous set of products or services. Which of the following is not an advantage of product division or departmentation?


(a) It facilitates the use of specialized capital, promotes coordination and allows optimum utilization of personal skills and specialized knowledge


(b) It facilitates growth and diversity of products and services offered by the organization


(c) The performance of each product line can be compared and analyzed


(d) It provides an excellent training ground for managerial personnel


(e) Managerial costs are lower because of the decentralization of various activities such as personnel, production, sales and accounts.

Apr 05 2018 Read more Less More

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