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:

Marginal Buyer

The consumer whose desire or need for a product is the least among all buyers, often determining the highest price they're willing to pay in a market.

Demand Curve

A chart that illustrates the connection between a good's price and the amount that consumers want to purchase.

Consumer Surplus

The cleavage between the cumulative amount that consumers are willing to disburse for a good or service and their actual expenditure.

Welfare Economics

The study of how the allocation of resources affects economic well-being.