Tom, the Head of Human Resources, Is Working on an Important

question 35

Multiple Choice

 Tom, the head of human resources, is working on an important project for which he develops a team of five middle-level managers, each coming from a different department, including finance, IT, marketing, logistics, and production. The five managers will be reporting to Tom, who heads the team, and will coordinate among themselves to complete the project on time. This scenario shows that

• A) the managers belong to a functional team.
• B) Tom has formed a horizontal team.
• C) Tom has formed a geographically distributed team.
• D) the managers belong to a self-directed team.

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Definitions:

Variable Expense Ratio

The ratio of variable costs to total sales, indicating how variable expenses change with sales levels.

Contribution Format

A way of presenting an income statement where variable costs are deducted from sales to show contribution margin before fixed costs are subtracted to show net operating income.

Income Statement

An income statement is a financial document that summarizes a company's revenues, expenses, and profits over a specific period, showing its financial performance.

Selling Price

The amount charged to the customer for a product or service, determining the revenue generated from sales.