Which of the Following Is True of Matrix Organizations

question 24

Multiple Choice

Which of the following is true of matrix organizations?

• A)Employees are more likely to focus on the overall business process rather than on their functional specialty.
• B)Employees have strong incentives to cooperate with other teams within a company.
• C)Influence costs are low as there are separate product and functional managers.
• D)There are well-defined lines of authority,eliminating scope of interdependence and lack of incentives.

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Definitions:

Allocated General Overhead

The distribution of indirect costs to specific products or business segments based on a formula or allocation base.

Variable Costs

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

Target Costing

A pricing method in which the selling price of a product is determined first, and then the target cost is calculated by subtracting the desired profit margin from the selling price.

Selling Price

The fee customers pay to acquire a product or service.