The Controllability Concept States That Managers Should Be Held Responsible

question 134

Multiple Choice

The controllability concept states that managers should be held responsible for:

• A) all items over which they have decision-making authority.
• B) costs and revenues, but not investments in assets used in their division.
• C) only items that are allocated to their divisions on a per-unit basis.
• D) fixed compensation items, but not contingent compensation items.

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Definitions:

Preoccupation

The state of being absorbed in thought; focusing on a particular idea or topic to the exclusion of others.

Dissatisfaction

A feeling of unhappiness or disappointment arising from unmet expectations or needs.

Personality Influences

The impact that an individual's character traits have on their behaviors, reactions, and interactions with others.

Perceive Situations

The process by which individuals interpret and give meaning to their sensory information and experiences.