Pedantically, functions are selected on a cab and are internal to a decoder. A decoder can support many more functions than it has outputs (i.e. wire connections), that's what function mapping is for.
You could, if you wanted, map F28 on your cab to some lighting effect. It doesn't mean the decoder has to have 28 physical outputs.
Having said that, it would be unusual for a decoder to only support four functions, so I think Dapol (or whoever) are just mislabelling the number of wires as well as calling them functions. "function outputs" would be better.