Eddie's Company Is Concerned About the Recent Decline in Sales

question 112

Multiple Choice

Eddie's company is concerned about the recent decline in sales of one of its best-selling products. The company has decided to permanently put a group of people in charge of analyzing competitive products and determining new features that should be added to their products. All the people in this group work in the marketing department of the company. The people in this group will perform these new tasks in addition to the ones they already have. Which of the following terms would best describe the newly formed group?

• A) Project team
• B) Task force
• C) Cross-functional team
• D) Committee
• E) Functional chimney

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Definitions:

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to products, calculated before the period begins based on estimated costs.

Variable Overhead

Costs that vary with the level of production output, such as utilities or indirect materials, but are not directly traceable to a specific unit of product.

Efficiency Variance

The difference between the actual input used to produce a good or service and the standard input expected, used to measure performance.

Fixed Manufacturing Overhead

Costs in the manufacturing process that do not change with the level of production, such as rent, salaries, and depreciation.