Which of the Following Is Not an Example of an Appropriate

question 58

Multiple Choice

Which of the following is not an example of an appropriate use of a cross-functional team?

• A) New product development.
• B) Preparing a RFQ for a routine commodity product.
• C) Locating a new production or distribution facility.
• D) Developing a commodity or purchase family strategy.
• E) Establishing a new business unit.

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Definitions:

Contingent Liability

A potential financial obligation that may occur in the future depending on the outcome of a specific event, not confirmed to exist or be measurable until one or more conditions are fulfilled.

Liability

A financial obligation or debt owed by an individual or company.

Accrual

The accounting method that records revenues and expenses when they are incurred, regardless of when cash transactions occur.

Onerous Contracts

Contracts in which the unavoidable costs of meeting the obligations exceed the economic benefits expected to be received under it.