Which of the Following Differentiates Between Formal and Informal Groups

question 47

Multiple Choice

Which of the following differentiates between formal and informal groups?

• A) The timeline of reference for formal groups is greater than that for informal groups.
• B) The impact of formal groups on organizational performance is less than that of informal groups.
• C) Formal groups pursue the goal of social contact, while informal groups have definite organizational goals to attain.
• D) Formal groups are typically smaller in size when compared to informal groups.
• E) Formal groups involve clearly defined tasks and roles, while informal groups are neither formally structured nor organizationally determined.

---

Definitions:

Variable Costing

An accounting method that only assigns variable costs to inventory, considering fixed costs as period expenses.

Absorption Costing

An accounting method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed overhead - as part of the cost of a product.

Variable Production Costs

Costs that change in direct proportion to changes in the level of production, such as raw materials and hourly labor.

Fixed Production Costs

Expenses that do not change with the level of production or sales over a short period, such as rent, salaries, and insurance, ensuring stability in production costs despite output variations.