Profit-Center Managers Always Have More Decentralized Decision-Making Authority Than Cost-Center

question 97

True/False

Profit-center managers always have more decentralized decision-making authority than cost-center managers.

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Definitions:

Purchase Order

A document issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services.

Receiving Report

A document used by a company to record the receipt of purchased goods, verifying that the goods have been delivered as per the purchase order.

Invoice

A document issued by a seller to a buyer, detailing products or services provided, amounts owed, and payment terms.

Merchandise Inventory

The value of a company's goods that are ready for sale to customers during an accounting period.