Dividing jobs by activity such as budgeting and accounting results in what type of division?

Dividing jobs by activity such as budgeting and accounting results in what type of division?

• A. Functional divisions
• B. Geographic divisions
• C. Product divisions
• D. Market divisions

Answer: (A)

Organizing work by activity such as budgeting and accounting creates a functional division—an organizational structure where departments are grouped by function (for example, finance, accounting, budgeting, HR, and IT). This setup concentrates expertise and processes within specialized areas, which can improve efficiency and consistency within each function. It differs from geographic divisions (by location), product divisions (by product line), or market divisions (by customer segment), which organize around location, product, or market rather than the type of work. A benefit is focused skill development within each function, while a common trade-off can be slower cross-functional coordination across different products or regions.

Organizing work by activity such as budgeting and accounting creates a functional division—an organizational structure where departments are grouped by function (for example, finance, accounting, budgeting, HR, and IT). This setup concentrates expertise and processes within specialized areas, which can improve efficiency and consistency within each function. It differs from geographic divisions (by location), product divisions (by product line), or market divisions (by customer segment), which organize around location, product, or market rather than the type of work. A benefit is focused skill development within each function, while a common trade-off can be slower cross-functional coordination across different products or regions.