Suboptimization Occurs When a Manager of a Cost Center Focuses

question 45

True/False

Suboptimization occurs when a manager of a cost center focuses on the goals of the cost center rather than on the goals of the organization as a whole.

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Definitions:

Strategic Management

Strategic management is the process of formulating and implementing strategies.

Organisation's Resources

Various assets, including human, financial, physical, and informational, that an organization utilizes to function and achieve its objectives.

Productivity

The measure of the efficiency of a person, machine, system, etc., in converting inputs into useful outputs.

Output/Input

A measure of efficiency that compares the quantity or quality of outputs (results, products) generated by a system to the inputs (resources, time) used.