The Manager of a Profit Centre Should Not Be Responsible

question 48

Multiple Choice

The manager of a profit centre should not be responsible for which of the following types of decisions?

• A) Deciding which supplier should be used for the purchase of direct materials.
• B) Establishing the number of employees that will need to work each day.
• C) Deciding whether or not their segment should purchase additional machinery.
• D) Deciding whether or not to accept a special order from a customer.

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Definitions:

Goal Incompatibilities

Differing objectives that are at odds with one another, making it challenging to achieve them simultaneously.

Horizontal Conflicts

Disagreements or clashes that occur between individuals or groups at the same level within an organization's hierarchy.

Premature Judgments

The formation of opinions or decisions based on insufficient or incomplete information.

Objective Criteria

Objective criteria are quantifiable, measurable standards used to assess or evaluate performance, outcomes, or decisions without personal bias or subjectivity.