Which of the Following Statements Is false

question 49

Multiple Choice

Which of the following statements is false?

• A) Decision models selectively describe the managerial situation.
• B) Decision models consider all factors from the real world.
• C) Decision models designate performance measures that reflect objectives.
• D) Decision models designate decision variables.

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Definitions:

Operating Income

Earnings before interest and taxes (EBIT), reflecting a company's profit from its core business operations.

Divisional Assets

Resources and property allocated to a specific division within a larger organization, instrumental in generating revenue.

Responsibility Center

A business segment or department within an organization whose manager is accountable for specific financial and operational outcomes.

Investment Center

A business segment within a company for which the manager is responsible for generating revenue and controlling costs, with the ability to make significant investment decisions.