​Cost Centers

question 19

Multiple Choice

​Cost centers

• A)​Are largely run by themselves
• B)Require the parent company to monitor quality control
• C)May try to reduce costs by reducing quality
• D)​Both B&C

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Definitions:

Locus of Control

A person's belief about the extent to which their outcomes are due to their own actions versus external forces.

Internal Control

Processes and procedures implemented by an organization to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

External Control

Refers to the belief that one's behavior and outcomes are influenced or dictated by external forces beyond one's personal control.

Interactional Psychology

The psychological approach to understanding human behavior that involves knowing something about the person and about the situation.