What Responsibility Center Is Judged for Effectiveness Rather Than Efficiency

question 72

Multiple Choice

What responsibility center is 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:

Factory Inspections

Reviews conducted in manufacturing facilities to ensure compliance with safety standards, labor laws, and quality control measures.

Supplier Factories

Manufacturing facilities that produce goods or components for other companies, under contract or agreement.

Self-Serving Bias

The common human tendency to attribute positive events to one's own character but attribute negative events to external factors.

Fundamental Attribution Error

The tendency to overemphasize personal characteristics and ignore situational factors when judging others' behaviors.