Which of the Following Is Not a Valid Reason for Developing

question 81

Multiple Choice

Which of the following is not a valid reason for developing responsibility center information?

• A)Responsibility center information is useful in deciding how to allocate resources among segments of the business.
• B)Separately measuring the revenue and expenses of each responsibility center is a necessary step in developing financial statements for the business entity viewed as a whole.
• C)Responsibility center information is useful in evaluating the performance of segment managers.
• D)Responsibility center information helps management to quickly identify sections of the business that are performing poorly.

---

Definitions:

Motivation

Is the set of forces that causes people to behave in certain ways. Individual motivation is also a major determinant of individual performance, but motivation is at the heart of what causes an employee to choose to expend the effort that will support any organizational activity.

Forces

Elements or factors that influence or drive changes within a social, physical, or business environment.

Competitive Advantage

Refers to the unique attributes or qualities an organization has that enable it to outperform its competitors.

Hierarchical Management Scheme

A structured organizational form in which decision-making authority is defined by a top-down approach.