Eric Majored in Engineering and Really Enjoyed His Work

question 97

Multiple Choice

Eric majored in engineering and really enjoyed his work.After the reorganization, Eric was required to work with a team that included production workers as well as marketing specialists to design the latest products the company was planning to offer.This implies ________.

• A) the company is becoming more centralized
• B) that Eric's job responsibilities have been reduced
• C) the company is becoming more mechanistic
• D) that Eric is a part of a cross-functional team

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Definitions:

Unit Product Cost

The total cost to produce one unit of product, including direct materials, direct labor, and allocated overhead.

Contribution Margin Ratio

A financial metric that shows what percentage of sales revenue is not consumed by variable costs and therefore contributes to covering fixed costs.

Segment Margin

The profit or loss generated by a particular segment of a business, after accounting for direct and indirect costs.

Net Operating Income

The profit generated from a company's operational activities after deducting operating expenses from operating revenues.