Mike Morrell Is a Production Supervisor in Porco Rosso, an Aircraft

question 61

Multiple Choice

Mike Morrell is a production supervisor in Porco Rosso, an aircraft manufacturing firm. After evaluating Mike's managerial capabilities, some members of the senior management feel that average productivity would improve if more workers were assigned to him. However, some managers are skeptical about Mike's ability to handle more workers.
-Which of the following statements, if true, would weaken the argument favoring increased span of control?

• A) Mike has a reputation of handling interpersonal conflicts effectively.
• B) Performance reports from the last few years show that teams that were monitored closely had higher productivity.
• C) Porco Rosso recently launched its latest engine model, the PR-4.
• D) Market trends indicate that the demand for aircraft is expected to increase substantially over the next few years.
• E) When additional workers were assigned to Mike on a previous occasion, it led to favorable and productive results.

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Definitions:

Overapplied

A situation where the allocated overhead costs exceed the actual overhead costs incurred.

Manufacturing Overhead

Expenses related to manufacturing that cannot be directly tied to a specific product, such as salaries of supervisors and equipment depreciation.

Underapplied

A situation where the allocated or applied costs in accounting are less than the actual costs incurred.

Overhead Cost

Expenses not directly tied to the production of goods or services, such as rent, utilities, and administrative expenses.