Eric Works with a Team That Includes Production Workers as Well

question 94

Multiple Choice

Eric works with a team that includes production workers as well as marketing specialists to design the latest products the company was planning to offer. This implies ________.

• A) the company is becoming more centralized
• B) that Eric's job responsibilities have been reduced
• C) the company is becoming more mechanistic
• D) that Eric is a part of a cross-functional team

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Definitions:

Fixed Cost

Costs that do not vary with the level of output or production, such as rent, salaries, and insurance premiums.

Output

The quantity of products or services generated by an enterprise, sector, or economic system.

Physical Capital

Assets used in the production process that are physical in nature, such as buildings, machinery, and equipment.

Variable Costs

Expenses that vary directly with the amount of output or business operations.