Decentralized Organizations Can Delegate Authority and Still Maintain Control and Monitor

question 58

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?

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

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Definitions:

Reflexive Response

An automatic, involuntary reaction to a stimulus, not requiring conscious thought.

Stimulus

Any event or situation that evokes a response from an organism.

Observational Learning

A process in which an individual learns new responses by observing the behavior of another (a model) rather than through direct experience; sometimes called vicarious conditioning.

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired; a response that is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.