Prentiss Company Is Decentralized with Three Divisions

question 134

Multiple Choice

Prentiss Company is decentralized with three divisions.While all three division managers have responsibility for costs,only the Division Three manager has responsibility for generating revenues.Select the correct statement from the following.

• A) Prentiss Company is not large enough to benefit from preparing responsibility reports.
• B) Responsibility reports should be prepared for Division Three only.
• C) Responsibility reports should be prepared for all three divisions.
• D) Responsibility reports should be prepared for Divisions One and Two only.

Understand the concept of person-job and person-organization fit.

Recognize and evaluate discriminatory practices in employment.

Understand the aims and applications of the Employment Equity Act and comparable legislative frameworks.

Understand the importance of non-discriminatory job criteria in hiring and job assignments.

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Definitions:

Average Variable Cost

Average variable cost is the total variable cost divided by the quantity of output produced, showing the cost of producing each unit excluding fixed costs.

Short-Run Marginal Cost

The cost incurred by producing one additional unit of a product in the short term where at least one input is fixed.

Renting

The act of paying for the use of something, typically property, land, or a vehicle, owned by another person or company, over a specific period.

Additional Cost

Expenses that are not previously planned or accounted for, often arising unexpectedly in the course of an action or project.