Which of the Following Statements About the Use of Operations

question 129

Multiple Choice

Which of the following statements about the use of operations management as a control is TRUE?

• A) Operations management can be used as a control by tying it in with the other functions.
• B) When operations management is used as a control,operations managers should be held responsible for all product-related activities.
• C) Accountability for operations managers is spelled out in rules when the organization is bureaucratic in nature.
• D) In a clan system,accountability is usually not formalized.
• E) Misplaced accountability that occurs with operations management reduces effectiveness of control and increases conflict.

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Definitions:

Operating Income

Earnings before interest and taxes (EBIT), indicating the profitability from regular business operations.

Profit Center Manager

An individual responsible for managing a segment or division of a business that is treated as its own unit for the purpose of calculating its profitability.

Operating Income

A measure of a company's profitability from its core business functions, excluding non-operating income and expenses.

Support Department Allocations

This is the process of distributing the costs of support departments to producing or operational departments within an organization.