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A Differential Between 'Functional and 'Divisional' Structure of Organising on the Basis of the Following: Cost Involved

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Question

A differential between 'Functional and 'Divisional' structure of organising on the basis of the following:

Cost involved

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Solution

Basis Functional Structure Divisional Structure
The cost involved Less expensive and economical because
functions are not duplicated.
Expensive and not so economical because resources are required in different departments and there is a higher rate of duplication of
work
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2013-2014 (March) Foreign Set 2

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