Joel,an Employee of the Engineering Department,was Temporarily Assigned to Work

question 258

True/False

Joel,an employee of the engineering department,was temporarily assigned to work with specialists from other departments to develop a new product.Upon completion of this project,Joel returned to his position in the engineering department.This arrangement illustrates the use of a cross-functional team.
In a cross-functional team,the members work together on a long-term basis.They may work together on more than one project,and over an extended period of time.The fact that Joel views his work on the team as temporary and plans to return to his old position when the project is completed suggests that the firm is using a matrix organization.

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Definitions:

Output

Refers to the quantity of products or services produced by a business, industry, or economy.

Marginal Cost

The increase in total cost that arises from an increase in production by one additional unit.

Average Variable Cost

The total variable cost of production divided by the quantity of output produced, representing the average cost of each unit of output when only variable costs are considered.

Cost-Minimizing Firm

A business entity that seeks to achieve production at the lowest possible cost.