Ledger Records for Inventory Items and Services Differ as to -

question 16

Multiple Choice

Ledger records for inventory items and services differ as to -

• A) the requirement to enter linked expense accounts
• B) the requirement to enter linked revenue accounts
• C) the requirement to enter linked asset accounts
• D) items and services require the same linked accounts

Appreciate the importance of information flow, decision-making authority, and incentive systems in managing divisional conflicts.

Distinguish between the objectives of maximizing division profits versus maximizing company-wide profits.

Analyze the implications of rewarding managers based on division revenues versus division profits.

Understand the consequences of managerial decisions on company-wide performance and inter-divisional relationships.

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Definitions:

Esteem Needs

A concept in psychology that refers to the human desire for respect, self-esteem, and recognition from others, being part of Maslow's hierarchy of needs.

Extrinsic Rewards

Incentives provided by external sources, such as money, promotions, or recognition, that motivate individuals to perform certain behaviors or achieve goals.

Lower-Order Needs

refer to basic human requirements such as safety, physiological needs, and security, primarily described in Maslow's hierarchy of needs.

Maslow's Hierarchy

A psychological theory proposing that humans are motivated by five basic categories of needs: physiological, safety, love/belonging, esteem, and self-actualization, in that order.