Which of the Following Statements About Management Control Systems Is

question 128

Multiple Choice

Which of the following statements about management control systems is FALSE?

• A)In designing management control systems,top managers must consider the system's impact on the employee behavior desired by the organization.
• B)The management control system should be designed to achieve the best possible alignment between local manager decisions and the actions central management seeks.
• C)The design of a management control system should consider the responsibilities of managers and the amount of autonomy they have.
• D)Profit-center managers always have more decentralized decision-making authority than cost-center managers.

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Definitions:

Economic Theory

A structured explanation or framework about how economies function, including principles and models to understand economic behavior and markets.

Abstract Ideas

Concepts or notions that are not tangible or concrete, often involving complex thinking processes and creativity.

Real-World Situation

Circumstances or events that occur in the actual world, outside of controlled or theoretical environments.

Normative Statement

A statement that expresses a value judgment or opinion, not a fact, and suggests how things should be.