What Horizontal Linkage Mechanism Includes a Liaison Person Who Communicates

question 40

Multiple Choice

What horizontal linkage mechanism includes a liaison person who communicates and coordinates activities between other departments?

• A) direct contact
• B) task forces
• C) information systems
• D) teams

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Definitions:

Fixed Overhead Items

Costs that do not change with the level of production or sales over a certain range, such as rent, salaries, and insurance.

Material Price Variances

The difference between the actual cost of materials and the standard cost multiplied by the actual quantity of materials used.

Cost Control

The process of monitoring and managing the expenses of a business to adhere to a budget or increase profitability.

Flexible Budget Cost Variance

The difference between actual costs and the costs allocated in the flexible budget, which adjusts based on actual levels of activity.