Decentralized Organizations Can Delegate Authority and Still Maintain Control and Monitor

question 92

Multiple Choice

Decentralized organizations can delegate authority and still maintain control and monitor managers' performance by designing appropriate management control systems. Which of the following responsibility centers would be evaluated similar to an independent business? (CMA, adapted)

• A) Profit center.
• B) Revenue center.
• C) Investment center.
• D) Discretionary cost center.

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Definitions:

Need Recognition

The first stage in the buying process, where the consumer identifies a need or problem that needs to be solved or fulfilled.

Purchaser-supplier Satisfaction Matrix

A tool used to measure and analyze the satisfaction levels between buyers and suppliers, facilitating better business relationships.

Undesirable Region

A geographic area deemed unsuitable for certain activities or investments due to various risk factors.

Mutual Solution

A resolution or outcome that benefits all parties involved in a situation or negotiation.