Identify Which of the Following Statements About Cost Centers and Decentralization

question 123

Multiple Choice

Identify which of the following statements about cost centers and decentralization is true.

• A) Cost centers are centralized, but profit centers are decentralized.
• B) Decentralized organizations are organized into profit centers.
• C) Accountability for revenues and expenses exists independently of the ability to make decisions.
• D) Accountability for revenues and expenses requires the ability to make decisions.

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Definitions:

Haptics

The science and technology of transmitting and understanding information through touch.

Proxemics

The study of how people use and perceive the physical space around them, including personal distance and territory.

Kinesics

The study of communication through body movements, gestures, and facial expressions rather than through verbal language.

Decentralized Decision Making

A process in which decision-making authority is distributed throughout an organization rather than being centralized in a single point of authority.