Decentralized Organizations Can Delegate Authority and Still Maintain Control and Monitor

question 92

Multiple Choice

Decentralized organizations can delegate authority and still maintain control and monitor managers' performance by designing appropriate management control systems. Which of the following responsibility centers would be evaluated similar to an independent business? (CMA, adapted)

• A) Profit center.
• B) Revenue center.
• C) Investment center.
• D) Discretionary cost center.

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Definitions:

Normal Accidents

A theory that predicts that in complex technological systems, accidents are inevitable due to the unpredictable interaction of multiple failures.

Human Subjectivity

The condition or quality of being subjective, referring to how individuals' perspectives, emotions, and experiences are uniquely their own and influence their understanding of the world.

Technology Failure

Events or conditions where technological systems do not operate as intended, leading to negative outcomes or disruptions.

Acid Rain

Acid rain refers to precipitation that is significantly more acidic than normal, resulting from atmospheric pollution, especially the emission of sulfur and nitrogen compounds.