Indicate Whether Each of the Following Statements About Responsibility Centers

question 123

Short Answer

Indicate whether each of the following statements about responsibility centers is true or false.
A responsibility center controls identifiable revenue or expense items.______
To be designated as a responsibility center,a department need not be a large segment of an organization.______
A cost center generates revenues and expenses.______
Investment centers are commonly found at upper levels of the organization chart.______
The manager of a profit center is evaluated based primarily on his/her ability to control costs.______

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Definitions:

Cognitive Generalization

The extension of learned behavior or response to situations that are similar, but not identical, to the original learning environment.

Extremity Bias

The tendency for people to remember and give disproportionate weight to the most extreme examples or experiences.

Group Attribution Error

The tendency to erroneously attribute the behavior or attitudes of individuals within a group to the group as a whole.

Prototype

An original model on which something is patterned or an early, typical example of a concept or category.