Managers of What Type of Decentralized Units Have Authority and Responsibility

question 91

Multiple Choice

Managers of what type of decentralized units have authority and responsibility for revenues, costs, and assets invested in the unit?

• A) profit center
• B) investment center
• C) production center
• D) cost center

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Definitions:

Positive Correlation

A relationship between two variables in which both move in the same direction, meaning as one variable increases, the other also increases.

Moral Hazard

A situation in which one party is more likely to take risks because they do not bear the full consequences of their actions, often due to information asymmetry.

Deductible

The amount paid out of pocket by the policyholder before an insurance company pays a claim.

Insurance Coverage

The amount and types of risk or liability that are covered for an individual or entity by insurance services, against losses.