The Supervisors of the Production Division of One of the Branches

question 86

Multiple Choice

The supervisors of the production division of one of the branches of Georgia Mills have been informed of some irregularities noticed in inventory of raw materials by some trusted subordinates. To get a clearer picture, the supervisors had a quick meeting with the subordinates who reported the matter over lunch. The subordinates recommended rotating the schedule of employees who account for the incoming and used up stock so as to pinpoint the defaulting employee. The supervisors agreed that this was a good strategy but admitted that the matter must be escalated to the production manager before such a change can be implemented. They followed up this meeting with subsequent sessions to evaluate how the change worked. The supervisors and subordinates form a(n) ________ team in this scenario.

• A) cross-functional
• B) independent
• C) problem-solving
• D) virtual
• E) self-managed

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Definitions:

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that are becoming the global standard for the preparation of public company financial statements.

Statement of Financial Position

A financial statement detailing an organization's assets, liabilities, and equity at a specific point in time, known as the balance sheet.

Shareholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, representing the ownership interest of shareholders.

SFAS No.123

A Statement of Financial Accounting Standards providing guidance on stock-based compensation, requiring companies to expense the cost of employee services received in exchange for an award of equity instruments.