Swift Software Operates Stores Within Five Regions

question 72

Short Answer

Swift Software operates stores within five regions. Regional managers are held accountable for marketing, advertising, and sales decisions, and all costs incurred within their region. In addition, regional managers decide whether new stores will open, where the stores will be located, and whether the stores will lease or purchase the facilities. Store managers, in contrast, are accountable for marketing, advertising, sales decisions, and costs incurred within their stores. Ideally, on the basis of this information, what type of responsibility center should the software company use to evaluate its regions and stores?

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Definitions:

Working Out

The activity of exercising, often at a gym or at home, to improve physical fitness.

Good Health

A state of physical, mental, and social well-being, not merely the absence of disease or infirmity.

Attribution Theory

A psychological framework that explains how individuals infer the causes of others' behaviors, attributing them to either internal dispositions or external situations.

Behavioral Explanation

An analysis or justification of actions based on psychological principles of behavior.