Why Is It Important to Identify the Relevant Client in the Organization

question 3

Multiple Choice

Why is it important to identify the relevant client in the organization when entering into an OD relationship?

• A) there should be a good fit between the organizational decision-maker and the OD consultant
• B) the client will be the one to explain the problem
• C) OD efforts could fail if there are political struggles going on among the key decision makers
• D) the relevant client has access to the right data

Understand the concept of consumer surplus and how to calculate it.

Comprehend the relationship between market price, consumer willingness to pay, and consumer surplus.

Interpret graphical representations of market demand and consumer surplus.

Explain how changes in market conditions, such as price changes or supply shifts, affect consumer surplus.

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Definitions:

Direct Labor Standards

The expected labor time and cost that should be incurred under normal conditions to produce a unit of output.

Labor Rate Variance

The difference between the actual cost of direct labor and the estimated cost of direct labor at standard rates for the production achieved.

Labor Efficiency Variance

The difference between the actual hours worked to produce goods and the standard hours expected, multiplied by the standard labor rate, indicating efficiency in labor use.

Material Price Variance

The variance between the real price paid for materials and their anticipated (standard) price.