Answer:
D) Project importance is enhanced by setting authority equal to that of functional departments.
Explanation:
A matrix organization is characterized by, multiple command system and overlapping of command, control and behavioral pattern.
Here, temporary project groups are created so as to handle short term projects. Personnel are drawn from functional department and their activities are controlled and coordinated by a project manager.
Once a project is completed, the structure is disbanded and the personnel return to their original departments i.e functional department.
During the project duration, a person is responsible and reports to two bosses, one being the project manager and secondly to the functional boss. Thus, under such a structure exists dual reporting.
Under matrix structure for project management, the project manager is not allowed to use resources exclusively for the project i.e like in project management. Rather, such a manager is required to share resources with the organization.
The purchase of low-quality materials would most likely the result of a favorable materials price variance coupled with an unfavorable material usage variance. Material price variance is the difference between the cost and the budgeted and actual cost to obtain an object or materials, multiply to the total amount of the product purchased. They are what you called positive value of direct material price and negative value of direct material price. A positive value of direct material price variance is the one that is favorable and it means that the direct material was purchased for a lesser price than the standard price. A negative value of direct material price variance is the one that is unfavorable and it means that more than the expected price per unit is paid.
a. The amount that will go to the preferred stockholders is $400,000.
b. The amount of the declared dividend that will be available for common stock dividends is $200,000 ($600,000 - $400,000).
Data and Calculations:
Cumulative Preferred Stock Outstanding = 100,000 shares
Dividends per share = $2
Cumulative Preferred Dividend last year = $200,000 (100,000 x $2)
Preferred Dividend this year = $200,000 (100,000 x $2)
Total preferred dividend to be paid this year = $400,000
Thus, the Preferred Stockholders will be paid $400,000 ($200,000 for last year and $200,000 for this year).
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Answer: The answer is a Common Law
If you do t plan on having it for a long time, then you don’t have to worry about the maintenance issues and upkeep.