What Responsibility Centers Are Judged for Effectiveness Rather Than Efficiency

question 39

Multiple Choice

What responsibility centers are judged for effectiveness rather than efficiency?

• A)investment center
• B)revenue center
• C)standard cost center
• D)profit center
• E)expense center

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Definitions:

Directors

Individuals elected by shareholders to a company's board, responsible for making major decisions and overseeing management.

Marshaling Resources

The act of gathering, organizing, and deploying resources (human, financial, material) effectively to achieve specific objectives.

Bootstrapping

A self-funding approach where entrepreneurs start and grow their businesses using personal finances or the operating revenues of the new company.

Random Activities

Activities that occur without a definite aim, reason, or pattern.