The Manager Who Wishes to Diffuse Responsibility for a Potentially

question 133

Multiple Choice

The manager who wishes to diffuse responsibility for a potentially incorrect decision should

• A)use non-programmed decision making.
• B)make the decision herself.
• C)use a group to make the decision.
• D)disregard the rational decision-making model.
• E)be prepared to accept the sunk costs associated with the decision.

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Definitions:

Budgetary Control Process

A method for managers to set financial and operational goals with budgets, monitor performance, and take corrective actions to stay on track with objectives.

Budget

An estimate of income and expenditure for a set period of time, serving as a financial plan and control method.

Budgeted Balance Sheet

A budgeted balance sheet forecasts a company's financial position at the end of a future period, projecting assets, liabilities, and equity.

Capital Expenditure Budgets

Financial plans for an organization's purchases of long-term assets that will be used for more than one year.