
Concept explainers
Concept Introduction:
Organizations today have grown manifold. Companies have grown tremendously, where operating them as a single unit is herculean task. Hence it is advisable to divide an organization into various departments based on the functions they perform for effective management and functioning.
Departmentalization enables division of work and each department shall have a manager responsible for that particular departmental function.
Reason for division of departments in an organization

Explanation of Solution
Following are the advantages of departmentalization:
- There is scope for specialization when a manager is engaged in a particular functional department. He would equip and excel in that functional area.
- When an organization is divided into departments, the administration process becomes easy. Each department can be given an objective or goal. Any deviation from the objective can be easily noticed in various departments.
- Each function is divided between the departments based on their nature. Each department manager will be held responsible for the functioning of their departments.
- The top management can easily communicate with the department heads and effectively convey their goals and take their suggestions in the decision-making process.
Division of departments ensures division of work. Every worker is instilled with the sense of process/job ownership. Also departmentalization promotes cross functioning and communication effective as no single department can work on its own without coordinating with others. Thus it ensures transparency and efficacy.
Thus the reason for division of departments in companies is explained.
Want to see more full solutions like this?
Chapter 24 Solutions
Loose Leaf For Fundamental Accounting Principles Format: Loose-leaf
- In 2022, North Shore Community College had a total student body that was 5% more than in 2021, which was 5% more than in 2020. The enrollment in 2022 was 4,200. How many students attended the college in 2021? How many students attended the college in 2020?arrow_forwardWhen iam uploading it getting blurr comment i will write values. Don't answer with incorrect dataarrow_forwardSolve correctly if image is blurry comment..arrow_forward
- If data is not clear please commentarrow_forwardPlease don't use AI And give correct answer .arrow_forwardLouisa Pharmaceutical Company is a maker of drugs for high blood pressure and uses a process costing system. The following information pertains to the final department of Goodheart's blockbuster drug called Mintia. Beginning work-in-process (40% completed) 1,025 units Transferred-in 4,900 units Normal spoilage 445 units Abnormal spoilage 245 units Good units transferred out 4,500 units Ending work-in-process (1/3 completed) 735 units Conversion costs in beginning inventory $ 3,250 Current conversion costs $ 7,800 Louisa calculates separate costs of spoilage by computing both normal and abnormal spoiled units. Normal spoilage costs are reallocated to good units and abnormal spoilage costs are charged as a loss. The units of Mintia that are spoiled are the result of defects not discovered before inspection of finished units. Materials are added at the beginning of the process. Using the weighted-average method, answer the following question: What are the…arrow_forward
- General accountingarrow_forwardFinancial accounting questionarrow_forwardOn November 30, Sullivan Enterprises had Accounts Receivable of $145,600. During the month of December, the company received total payments of $175,000 from credit customers. The Accounts Receivable on December 31 was $98,200. What was the number of credit sales during December?arrow_forward
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education





