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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.

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Question added by Vinod Jetley , Assistant General Manager , State Bank of India
Date Posted: 2015/05/09
Vinod Jetley
by Vinod Jetley , Assistant General Manager , State Bank of India

(e)

 In case of Product Departmentation, managerial costs are higher because of the decentralization of various activities such as personnel, production, sales and accounts.

Hence from above discussion, we can infer that option (e) is a disadvantage of Product Departmentation.

Options (a), (b), (c) and (d) are all advantages of Product Departmentation.

VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

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

Ahmed Mohamed Ayesh Sarkhi
by Ahmed Mohamed Ayesh Sarkhi , Shared Services Supervisor , Saudi Musheera Co. Ltd.

I Will' Go With Your Answer Sir

mohamed badawy
by mohamed badawy , Head Of Operations , Almajdoui Logistics Company

I choose number E ....................................................................

Nasir Hussain
by Nasir Hussain , Sales And Marketing Manager , Pakistan Pharmaceutical Products Pvt. Ltd.

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

Ahmed kandil
by Ahmed kandil , Cost Controller , Battour Holding Cpompany

( E ) is the correct answer 

Thank you 

Sattar Abdulkarim  Mohamed
by Sattar Abdulkarim Mohamed , Country Sales Director , Ideal Technical Solutions

The most relevant answer in these choices is Option E.

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