The Vice President of Sunflower Computers Is Trying to Decide

question 45

Multiple Choice

The Vice President of Sunflower Computers is trying to decide on the composition of a new product development team.If he chooses members who are from different backgrounds,he can reap the benefits of:

• A) a broader knowledge base.
• B) lesser cross-fertilization of ideas.
• C) homophily.
• D) social loafing.

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Definitions:

Plantwide Overhead Rate

A single overhead absorption rate calculated to allocate all manufacturing overhead costs uniformly across all products.

Machine Hours

A measurement of production time, indicating the total hours that machinery has been operated.

Allocation Base

A factor or criterion used for distributing overhead costs to products or services, based on activities such as direct labor hours or machine hours.

Departmental Overhead Rates

The method of allocating overhead (indirect costs) to specific departments based on relevant criteria, such as department size or usage.