Chang Is a Project Manager at Paradox Industries

question 182

Multiple Choice

Chang is a project manager at Paradox Industries. He is able to borrow specialists from the organization on a regular basis to assist in major projects. After the project ends, the specialists return to their functional units to await new assignments. Paradox Industries utilizes a:

• A) line organization model.
• B) bi-functional organization model.
• C) lateral transfer organization model.
• D) matrix organization model.

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Definitions:

Denominator Level

The activity level chosen to compute the predetermined overhead rate, reflecting expected or actual activity.

Machine-Hours

A measurement of the amount of time machines are run during production, often used as a basis for allocating manufacturing overhead.

Fixed Overhead Budget

A fixed overhead budget outlines the expected costs of fixed overheads, such as salaries and rent, that are not influenced by changes in production volume.

Volume Variance

The difference between the planned volume of output and the actual volume of output, which affects costs.