Departmentation on the basis of production process is called _________.

The correct answer is: B. departmentation by products.

Departmentation by products is a type of departmentalization that groups employees and resources according to the products or services that they produce. This type of departmentalization is often used in manufacturing companies, where each department is responsible for a different product or line of products.

The other options are incorrect because:

• Option A, equipment department, is a type of departmentalization that groups employees and resources according to the type of equipment that they use.
• Option C, departmentation by territory, is a type of departmentalization that groups employees and resources according to the geographic area that they serve.
• Option D, departmentation by customers, is a type of departmentalization that groups employees and resources according to the type of customer that they serve.