Which of the Following Statements Is True Regarding a Cross-Functional

question 30

Multiple Choice

Which of the following statements is true regarding a cross-functional team?

• A) A cross-functional team is made up of employees from different hierarchical levels.
• B) A cross-functional team is made up of employees from the same department.
• C) Cross-functional teams have decreased in popularity in the last few decades.
• D) In the case of a cross-functional team, the early stages of development are typically very short.
• E) Cross-functional teams are used for developing new ideas and coordinating complex projects.

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Definitions:

Variable Expense Ratio

A ratio computed by dividing variable expenses by sales.

Operating Leverage

A financial concept that measures the proportion of fixed costs in a company's cost structure, indicating its sensitivity to changes in sales volume.

Contribution Margin

The difference between sales revenue and variable costs, indicating how much revenue contributes to covering fixed costs and generating profit.

Net Operating Income

A measure of the profitability of a business's core operational activities, excluding any income or expenses not directly related to its main operations.