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:

Fitted Values

Predicted values calculated from a statistical model, used to compare against actual values observed in the data.

Simple Linear Regression Model

A statistical method for modeling the relationship between a single independent variable and a dependent variable by fitting a linear equation.

Slope

In mathematics, the slope of a line is a number that describes both the direction and the steepness of the line, often calculated as the rise over run in linear functions.

Average Change

A measure of the central tendency that indicates the mean difference between successive data points.