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:

Leadership Style

The manner and approach of providing direction, implementing plans, and motivating people.

Team Management

The process of leading, organizing, planning, and controlling a group of individuals to achieve specific goals.

Authority-Obedience

A management approach focused on establishing clear lines of authority and expecting strict compliance from subordinates.

Country Club

A private club offering recreational sports, leisure activities, and dining facilities, typically reserved for members and their guests.